The rumor was that Apple was due to begin selling a contract-free version of the iPhone soon “at list price.” It’s true, you can now pick one up for $499 (3G), $599, or $699 (3GS). They are still sadly locked to AT&T, like a pretty girl chained to Jabba The Hutt, but whatever. Technicalities.
We all know it takes like two seconds to jailbreak an iPhone. The assumption here is that you will do so I guess. The Apple store will be selling them at one unit per person per day.