i checked out their website the 3g comes with a "sim card ejector"
Ok so the deal is....the 8GB is $199 is you are able to upgrade, if you are not able to upgrade you add $175 to the deal. that makes the new 3g iphone $375. THEN the new 3g users will be charged $30 for the data plan ( yes you have to get this plan to have the iphone) instead of $20 like the 2g phones have. SO in the long run even at $199 you are paying more in a 24 month contract than the old iphone.
3g is the 3rd gen of GSM, it means you get broadband speeds while in the internet. It means you get 14.4bits/s if i remember right.