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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.
Let the hive mind of Engadget get that for you.
"I'm in the market for a new phone and money isn't a limitation. I'm also not partial to any particular US carrier, but here are some of the features I'd like to have: WiFi, GPS, good coverage in lots of places, push Gmail (a must!), physical keyboard (a must!), a touchscreen, decent battery life and a relatively slim body. And please, nothing that has a fruit logo on it. No offense to the fruit fans, though. Thanks!"

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