AT&T is offering ridiculous discounts on refurbished iPhone 3G units. In fact, while supplies last on their web site you may be able to pick one up for as low as $49 if you're willing to sign a 2-year agreement.

Is the discount enough to advise going with the iPhone 3G instead of the iPhone 3GS? Not in our view, but if you're short on cash you can get an iPhone 3G for a steal.