So if I'm reading this right (and I might not be), it sounds like Cingular will allow current not-in-upgrade-time customers buy an iPhone and simply extend their contracts another two years:
It was again confirmed that customers must agree to a two year contract, even if that requires customers to renew their current service.
Granted, that's from an Engadget report and I don't have the direct link to the press conference notes, but that's a good sign for current customers.