Apple recently reduced the price of the iPhone by some $200. This has left the people who rushed out to buy it hopping mad. As a result, Apple apologized to them and offered a $100 rebate. In all fairness though, this is how the tech world worked. I remember when DVD players first came out, they cost over $1000. Now they can be bought for as low as $50 and your local supermarket. Plasma and LCD TVs regularly sold for over $10,000 and are now 1/10th the price.
That's the price of adopting early. You pay the big bucks and take a gamble. Sometimes it is better to wait. By the same token, perhaps the price cut was a little too soon, a scant two months after its introduction. This could imply that the iPhone isn't selling as much as Apple hoped, or maybe they're just gearing up for the Christmas season.

Still no word on whether Apple plans to start selling the iPhone outside of the US anytime soon. I'm willing to bet there are many Canadians dying to find one under the tree on December 25th. The iPhone has now been hacked and it has been shown that US bought hacked iPhones do work on the Rogers/Fido network, which uses the iPhones GSM protocol. However, functionality is somewhat limited. It makes more sense to buy a Blackberry with full functionality rather than an iPhone with only partial wireless function. Though devices bought in the US could probably still be used as a stand alone PDA and media player, but don't quote me on that.