Yep, AT&T still has the exclusivity agreement for iPhone service in the US. Honestly, being stuck to AT&T was a deal breaker for me when the iPhone was $599. At $399, I was beginning to come around. At $199, 3G, GPS, and all the new apps, paying a little extra per month is DEFINITELY worth it for me.
If anyone wants to watch Steve Jobs give the Keynote:
http://events.apple.com.edgesuite.ne...ent/index.html
Fast forward to about 1:00:00 and start watching there for the last 30 minutes. It is well worth the time. I always wind up watching the keynote for Macworld and the WWDC keynote was on the same level in terms of quality speeches.