With the rumored iPad Mini, they just might continue making the 3GS instead of the 4. A non-retina cheapo iPhone option makes sense for prepaid and free phones,

With the rumored iPad Mini, they just might continue making the 3GS instead of the 4. A non-retina cheapo iPhone option makes sense for prepaid and free phones, and it's supposedly the same display PPI as the iPad Mini, so it could share a lot of components.