i have a GF3, and sure prices will drop 25% over the next year, but when they have droped and you go buy it i will have bought the GF3 ultra. if you insist on saving money and staying behind the proformance curve then that is your choice, and i don't respect it, but it is your choice.
it seems to me there are three ways to upgrade
1. always have the latest and the greatest. buy the best every one or two product cycles and resell your old hardware when you get something new.
2. buy the latest and the greatest when you need to upgrade, but only upgrade when your current hardware is really slowing you down.(at least you have braging rights every now and then) alternate what parts of your system you upgrade
3. buy the cheapest thing out there that will do what you want. upgrade every two or so product cycles or stay away from the new games becuase they are unplayable on your hardware.
my advise is this, when buying new hardware don't contrast the price of the upgrade, contrast the cost of the entire computer with the proformance increase you will see. sure the 64 MB GTS (the slowest thing i could posibly recomend for a gamer) costs about 40% of the GF3, but puting the GF3 in your 1700$ box instead of the GF2 GTS is only a 12% inceace in value of the system compared to well over 12% is gaming benchmarks(which is the only thing gamers use a fast system for). If you were buying a new box would you spend 12% more for 35% proformance increase? i hope so.
The GF3 is a new chip and design and as i personaly think it is perhaps underpriced and should be 500-600$ US instead of 350$. What AMD and NVidia have done by not scaling up their prices so fast is given the everyday person the ability to have the best box possible with the longest life with a managible cost increase.