iPhone 3.0 Released
apple.com
apple.com
http://arstechnica.com/apple/reviews/2009/06/hands-on-review...
http://twitter.com/JeremyCurry/statuses/2211487905
(This workaround was verified by multiple people on Twitter and on HN, see other posts in this thread.) So it sounds like there is a portion of the activation that happens over the Internet, but I don't know whether there's also a carrier wireless network activation.
http://www.suntimes.com/business/1626818,ihnatko-iphone-3-re...
I tend to feel like I'm waiting for my iPhone slightly more often, and I'm already bumping my head against 16GB of storage, so I'm sorely tempted - especially now that AT&T has relaxed slightly on the iPhone contract timing.
(I probably should have said "upgrade timing" and not "contract timing". Either way, my full-subsidy upgrade date is July 12th, so I could pick one up for $299 on Friday.)
If you spend a lot monthly, you might be eligible for a full subsidy at 12- or 18- months rather than the full two years' time.
And, it might even be possible to pay a smaller cancellation fee (perhaps $125-$175), then return as a full-subsidy new customer. One rep I spoke to a while ago seemed to see no problems with that approach.
Finally, an old phone may fetch $200-$300 without a contract.
So the net costs aren't as scary as $699 with a little extra effort.