I thought for sure they would be sold out by now. But no. You can still buy a 4GB iPhone for $299.
UPDATE: Sold out.
Curious if the price drop actually slowed sales of the 4GB model. People that were budgeting $499 for a new 4GB iPhone (or $399 for a refurbbed) can now get a new 8GB model for $399, and it looks like they are. (Or else Apple had boatloads of the 4GB model and it’s taking a while to unload them.)