This is likely the last week we will have to see pointless iPhone 5 rumors all over the web, as Apple has finally invited the press to an event on October 4 where they want to "talk iPhone." We've been hearing rumors of the nex-gen iPhone for ages now, and the most recent buzz suggests an iPhone 4S to compete with cheaper smartphones and a more proper upgrade in the form of an iPhone 5.
Whether or not any of that is true remains to be seen, but it would make sense.
I'm still on my iPhone 3GS and I frankly don't see any point in upgrading this year either, as the apps I use work just fine on the 3GS and for everthing else I have the iPad 2. If Apple does have a iPhone 4S coming, though, I will be taking a quick look at the upgrade cost to see what's going on. You can get Android phones for next to nothing these days, and it's really about time that the iPhone got cheaper.