The good:

• $199 8GB / $299 16GB
• 3G internet/voice with a minimal hit on battery life
• No longer has the proprietary recessed headphone jack
• Real GPS

The bad:

• Aluminum backing replaced with fingerprint-happy plastic
• 3G data plan costs an extra $10, bringing the base monthly price to $70
• Still no MMS picture messaging

Overall, the best thing to happen here is the $200 price drop. Apple finally wised up and works like any other phone manufacturer, allowing the carriers to subsidize the cost of a rather expensive phone.

I’m happy because the only things my current iPhone will lack are 3G internet speeds (I’m often on Wi-Fi, so no problem there) and GPS location. The new firmware is on its way, and I’ll have plenty of third party apps and Exchange/VPN support to keep me happy.