I'm on AT&T too and I cannot recommend the iPhone 3G highly enough. I thought I'd like it, but get sick of it like every other phone I had, but I love the iPhone more and more all of the time. I'm not an app maniac, but I have a few really awesome apps for Twitter, Facebook, and a few games that I play with co-workers when work gets slow, like Words with Friends. Most of the apps are free, so you don't even have to shell out anything.

Mostly, the best thing is just the internet anywhere and the Google Map which works as a step-by-step GPS, which is awesome when I'm finding a new shop to visit in Manhattan, because I don't look like a tourist with a big direction list.

Also, the 3G network is actually pretty fast.

The only cons about the iPhone, in my eyes, are:

1) The battery life is kind of dookie; however, if you let it charge overnight and keep it plugged in at your desk while at work, like I do, it's a non-issue.

2) I hate texting with the iPhone. I dearly miss texting with a qwerty keyboard. The iPhone does heat touch rather than touch calibration, so you can't text precisely with your fingernails - it has to be your fingers. It has an auto-correct so my texts are usually accurate, but it's still really annoying to text with. That's why when I'm on EoFF on my iPhone, my typing becomes weird.

PS: It's actually not THAT expensive to have an iPhone on a family plan, because I'm on one too with my brother. Just add $20 a month extra for the internet and you're good to go, champ.