I'm not gonna lie, I own and iPod, and use iTunes, but thats where my Apple loyalty ends. All the kids I knew from school would rant on and on about getting an iBook or the like. You know why, it's TRENDY. The same reason countless idiots spent 3 days waiting for the $600 iPhone. I bought my iPod because it was cheap and I needed a good mp3 player, but when it comes to regular items that have normal market presence (i.e., phones, PDAs, notebook, PC's. ) I would never go with an Apple product.
I bet they lowered the price because they realized that the phone wasn't worth the absurd $600 price tag. I looked at one at an Apple store, and for a regular phone user, it was ultra-lame. The battery-life sucks with the touch screen, it's huge, the interface sucks and service plans are crazy expensive.