I doubt it, seems like a step backwards.

I can see the 8-gig iPhone being upgraded with the faster chips in the not so distant future. Once they run out of the current low-end iPhone, they might as well transition to a unified 3GS lineup.

I wouldn’t be surprised by this. One they use up the old parts it makes sense to unify the architecture.

If true this would resolve the quandary I am in. I am torn between the G and GS. The GS features are nice but I don’t need the storage and the extra $100 is a bit hard to justify when the G will do everything I need. OTOH I want the newer technology. If they unify the platform and stay near the same price point It would make my decision much easier.

but I don’t need the storage and the extra $100 is a bit hard to justify when the G will do everything I need

I have found I can never have too much storage, but of course cost is a factor.

There has been several times when I wish I had video on my iPhone. A few weeks ago we were driving down a busy neighborhood street when we stopped to let a hot air balloon land in the intersection, it was getting dark and he was out of fuel. We both got still photos using our iPhones, but video would have been nice. We are only 1 year into our iPhone 3Gs, so we will wait until the next model before upgrading