I just pre-purchased my new iPhone 3G S, the third generation version that drops this Friday. It's clear to me that the S stands for 'screw,' which is what they do to customers who aren't yet eligible for a discount upgrade.
But did that stop this "must-have-the-latest-gadget" geek? Uh, no. I ordered the black 32-gig version.
It has video shooting and on-board editing, a 2x faster processor, on-board compass, 4g capability, (when AT&T gets around to upgrading their system, slated for late summer in some markets) voice control, and a slew of other features which make it pretty nifty.
Worth the upgrade? Depends on your taste and needs. For me, it's an easy decision, but I'd say sales will be less-than brisk unless AT&T decides to change policies post haste.