$99 iPhone??

So there’s a new rumor floating around at Engagdet that Wal-Mart will be getting a 4GB iPhone for $99.  They cite a BGR post and the Wal-Mart training materials spied above.

Now obviously 4 GB isn’t that much storage, but this certainly seems like a viable option for smartphone users who don’t mix their phone and music player.  Would anyone interested in having the mp3 player/phone combo even consider this option?  Personally, I have an 8 GB iPhone and am currently using 1.07 GB’s.  Admittedly, I’m not a heavy music/media consumer, but 4 GB wouldn’t really be all that bad for my use.  I know that as my wife continues to develop the iPhone bug, this would definitely be an attractive option for her.

I’m assuming Apple will move a good amount of product at this price, and ATT could care less since the plans are all the same, but how do tech savvy people feel about this possible development?