Ok, I think I get it now, I see what Apple did, which is still stupid but I get it. The new iPhone 5C is an iPhone 5 with a plastic body. The iPhone 5S is the actual "upgrade". The 5S does have a better camera and flash, like every upgrade should, but has things like a 64 bit operating system which was never explained in benefits other than an unnoticeable speed increase; perhaps there will be apps that justify this. And the the finger print security, which I'll leave you guys to think about it's usefulness.
So in a nutshell, Apple's marketing strategy is, in order to sell the new product, the 5S, they are downgrading the previous model the 5 into a plastic 5C to widen the value difference between the available models, while discontinuing the 5. The 5 that is being discontinued is essentially a better phone than the 5C because of the aluminum body.
Did Dr. Dre get a seat in the board of directors of Apple? This seriously does not seem like something Steve Jobs would have approved of.