Bummer dude.
Given your recent bad luck I hate to say this but: I honestly don't think the price will drop that much on the 1st gen iPhone.
Fact is that the 3g one is fatter (for the chip) and has been redesigned, I have seen a few 'leaked' shots that seem a little suspect but bottom line is that its gonna take a hell of a design to beat the current one and that on a fatter device et al.
I reckon there will be a lively market for 1st gen iPhone soon.
The only reason that I would upgrade at this stage is for 3G obviously but even then there would have to be a helluva good data plan and obviously the warranty is important.
Without those two things you wont fond me camping in line the day before it is released here
One other thing is: how the frack did 8gb get too small? To be perfectly honest I could do with more - who'da thunk you need over 10gig on a cell phone???