AT&T is either not moving as many unit as those extremely unattractive price of $149/$249 for the refurbished 8GB/16GB iPhone 3G or they want to capitalize on the residual holiday shopping mentality. Either way, they lowered the sale price by another $50 for their refurbished units. For an 8GB iPhone 3G, you can now pick it up for $99 while the 16GB version will go for $199.
This offer is still going to cost you a 2-year contract just like the normal priced iPhone 3G. What I don't understand is how is this suppose to attract people to buy? The real cost of iPhone 3G ownership is its ridiculous $30 data monthly plan w/o a text plan (that'll cost you atleast $5/mo extra). A savings of $100 for a unknown conditioned phone is merely 3 months worth of data plan cost savings. Ironically, warranty is limited to 90 days (or think of it as the same time you got your data plan for free in this deal, if you consider this a deal anyways).