Why are the old iPhones going for so much on ebay?

My iPhone was recently destroyed by my lawn mower, so I was looking out on ebay to see if I could find a bargain on a used one. But I see 8gb versions are going for upwards of $500 - used. That's what I paid for my 16gb brand new.
What is making them so popular?
Thanks,
Brad

It basically boils down to supply and demand. Locked iPhones in sealed boxes are bringing as much, if not more, than unlocked ones.
If you're thinking of upgrading, check your area to make sure there is 3G coverage, otherwise stick with the 1 gen model. You'll still be able to install the new 2.0 software and get apps from the App Store.
Dave M.
MacOSG Founder/Ambassador  An Apple User Group  iTunes: MacOSG Podcast
Creator of 'Mac611 - Mobile Mac Support' (designed exclusively for an iPhone/iPod touch)

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