Obviously the lower price that comes with the subsidy provided by the carrier (AT&T here in the states) appeals to the masses, the million plus 3G iPhone's sold to date is proof. However, in exchange for no contractual commitment, some of us were (are) willing to pay more for their iPhone. Sensing this to be the case, AT&T smartly decided to offer the iPhone with no contractual obligation. This is where the proverbial pooch gets screwed because AT&T also decided to tack on a premium above/beyond what a person might pay who starts a contract and then breaks it. Pure profit that, in this case, points to the Death Star's pure greed.
Will we upgrade to the iPhone 3G?
That is a question, isn't it. And, a good question at that. The short and easy answer is yes, probably. The longer answer involves pointing out that we enjoy our Apple iPhone unlocked, with the T-Mobile network. For us to make the switch to the 3G phone would mean not being able to enjoy 3G network speeds. Sure, we'd still be able to access T-Mobile's 2G network, a.k.a. Edge, but T-Mobile's interface to their 3G network operates at a different frequency than AT&T's.
For now, the iPhoneWriter.com team continues enjoying their original, iDay One Apple iPhone... now known as the 2G model. Once the version 2.0 software has been successfully jailbreaked and unlocked, we'll upgrade the software. All the while, patiently waiting to upgrade to the iPhone 3G.
[UPDATE 07.19.2008] The iPhone Dev team has done it again. We're upgrading now, entirely thanks to them. Look for a How-To to be posted soon.