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Actually, you don't know what you are talking about. The 128 and 256 MB mentioned is RAM, not capacity.(Capacity is 4, 8, 16, 32 GB) The difference is that RAM(memory) is used to store data and bring it up at any time, while the HDD(capacity) is used to store data only, namely the binary for the system and applications.
If you're scrapping about buying this phone, what else will you sell for the service? I want the iPhone 3G S but AT&T plans are crazy, so I got me an ipod Touch, the new ipod touch should be coming out in September, the word on the street is that it also gonna have a camera/video...I;m gonna wait for that.
Many cell phone carriers are starting to upgrade their networks to the 4G standards, so it actually is up to them. Apple just called the iPhone 3G that way because it was the first iPhone to support 3G networks.
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w w w. iPhone3GS. org
Memory is how fast the iPhone can process.
8GB was the minimal, even for the iPod touch.