Apple offers apology, rebate. Totally unnecessary for me, but really smart of them. This is how customer service is done.
When people asked me after the price-drop if I was pissed about buying one, I said "no way". I love my little iPhone and think it was totally worth the $599 when I bought it. I'm an adult and make decisions about what to buy based on what I can afford. I think a lot of people who felt burned got caught up in it and really couldn't afford the price tag in the first place.