I just traveled to the King of Prussia store, and learned that IF you are in your 14 day return period, bring in your iPhone and receipt, and they will refund the difference of $200.
What was I doing at the Apple store you may ask…I don’t know…. 
Apple Store Offering a $200 refunds for iPhone buyers
September 5, 2007 by MVShadow
Sweet. That should settle some complaints, but the line-waiters are probably still pissed.