Yeah gutted for anyone who already bought one tbh. I'm still sticking with my HTC till something better comes out, I like the look of the touch diamond but I'd never touch it at that price, hehe.
I'm getting one. Those with a non-3G iPhone can upgrade their iPhone and just start the contract again at 18months. £100 if you're on <£45 contract, for free if you're on >£45 contract
The only thing that lets the iPhone down is the camera and seeing as that doesn't bother me it's a non-issue
The iPhone is a seriously great phone and the UI/web browsing is far superior to any phone on the market