I thought the new policy was going to save me when my wife's iphone broke last fall. Except that when I read AT&T's announcement I found this:

San Antonio, Texas, March 31, 2008
Beginning on May 25, the company's new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat early termination fee. Instead, that fee, which is $175, will be progressively lowered by $5 during each month, every month, for the term of the contract. (The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements prior to May 25.)

So, for everyone who bought an iphone in the last 2 weeks the termination fee is only $175! The rest of us still have to pay what was on the contract the day we signed it.