Pricing for the still-available 8GB iPhone 3G is $99, which is already a pretty attractive price. However, if you're willing to buy a refurbished iPhone 3G, you can get it for a bargain basement $49.AT&T announced via Twitter on Friday night that while supplies last, refurbs can be purchased at the AT&T site for $49.
At the same time, while the 8GB model is still being actively sold, the 16GB model is not, but you can get a 16GB refurb for $99. Both of the models are benefiting from a $50 refurb discount.
iPhone 3GS availability is, well, pretty available, if you check out Apple's availability tool. While I don't believe AT&T is dumping the iPhone 3Gs, it's still a pretty hard-to-pass up price. Given they say it's only while supplies last, if you are thinking about it, jump on it.
Naturally, you will have to sign a 2-year service agreement. Note that just because it's a refurbished phone doesn't necessarily mean it was a problem device. AT&T states such devices were unused or lightly used and returned during the 30-day trial period, though they may have minor scratches.

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