$99 iPhones at Wal-Mart?

As a power user of the iPhone, I found my 1st generation device with 8GB of memory was quickly filled to capacity with songs and videos. I still struggle sometimes to manage the content on my iPhone 3G with its relatively robust 16 GB of memory. But I know a few people who bought 4 GB iPhone when they were out there, and are plenty happy with their devices to this day.

Now, rumors are out there that Wal-Mart is preparing to sell 4 GB iPhone 3G devices starting December 28. As an Apple shareholder, this gets me very excited as it brings the iPhone into the range of a whole new class of buyer, who may be flush with store credit from returning presents. This may be Apple's attempt toward an "iPhone Nano" or "iPhone Shuffle".

The question is, would a shopper who balks at a $199 iPhone, be willing to commit to $80 a month for data and voice? Or will this phone also be on a pay-as-you-go or cheaper voice-only plan?