@Glenn Gilbert
Yeah they could have easily said no. I'm not sure what the Wal-Mart sales predictions are or how much cut they get from each phone & contract combo sold but they both must multiply together to make it financially worthwhile.
I wonder how much they argued and cajoled about dropping the price, maybe Jobs said upfront "there will be no price drops or extra incentives...now let's talk business"
I'd love to get one, an iPhone (I love my iPod Touch) I really was wanting to buy the 3Jeez version when it came out but I'm gonna hang back until it's untethered from O2 so you can PAYG and they bring it up to a similar level of gadgetry & function on my current Nokia.
Stop icon, as that's what I've done with regards to purchasing said iPhone.