What? Are you mad? This is great news. It means an even easier way of getting hold of an iPhone 3G without worrying about the contract, particularly if you already have a contract like myself (It took me a lot of trouble to get a US iPhone for nearly £400 last year).
Now I've just got to sit it out for a few weeks after launch until they get it unlocked and I'll get one to run on Vodafone (fingers crossed).

@ Daniel: I agree 100%

@ Greg: To which devices are you referring?
I am yet to discover a device that balances GPS & 3G (let alone haptic or additional tech) with good battery life.
While I would describe iPhone(1) as having a satisfactory battery performance, it is far from outstanding and the impact of (much needed) 3G & GPS on said battery life does concern me.

I'm sure all iP users agree 3G is much needed on the iP (and quite frankly a ridicul-arse omission in the first place), I just hope the battery doesn't suffer as a result.

On a related note,
I wish the iP had the feature to select WiFi or network when using data related services (safari etc). I don't like to leave WiFi on all the time (as the battery suffers) but I similarly don't like having to fiddle around with preferences or services to enable wifi when I want to use it.
If only safari popped up a menu like 'connect using network, Switch on and use wifi' and then disable wifi afterwards.

Phew - got my 2 cents..