littleheaven: Well, after careful consideration I decided to get a "refurbished" 3 from the Apple Store while they're selling stock off cheap. Got a white 32GB Wi Fi for $675. In the end I decided that it would be such a huge step up from the 1 that I'd be delighted with it even if it doesn't have the A6 chip. I'm not a power user, mainly web browsing, email and Angry Birds (lol) so it's not like I need the extra grunt. I'll upgrade again a couple of models down the line, I think.
Thats a pretty awesome buy at that price.