Perhaps there are more differences between the two than just memory capacity. There was talk that two iPhones would be released; one catering towards the general mass market while a 'smartphone' version would also be available. Perhaps that's why you see the big jump in price between the two versions.
“Microsoft's not promising the world with Windows Mobile 6.5, nor are they delivering it -- it's very much a stopgap, complete with duct tape, bubble gum, and Bondo.”
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Perhaps there are more differences between the two than just memory capacity. There was talk that two iPhones would be released; one catering towards the general mass market while a 'smartphone' version would also be available. Perhaps that's why you see the big jump in price between the two versions.