Firstly, have you seen yet more bad treatment of potential customers by O2 experience stores? So a few more phones go on sale online early tomorrow and I was considering getting one but maybe not now.
Not now that I upgraded the iPhone I bought last December in Palo Alto and unlocked and got working in Ireland. I added a data package to my existing cheap phone package and was all happy with the phone until the 3G model came out. Today though as I said, I upgraded the firmware to 2.0 using the PWNage tool (btw the Windows version sucks and fails to work) and now I have many of the features that the 3G phone has and I have access to the Appstore on iTunes.
I use my phone mostly for (and in this order) Email, Twitter, texts, the Web and calls. Email hasn’t changed with the firmware but the new version of Twinkle, the Twitter app is free on the Appstore and is fantastic and you can see from this screenshot:

The Nearby feature is better in this version too so you can see those you’re not connected to but are near you and are using Twinkle/Twitter. Lots more people in Cork are now on iPhones and using Twitter.
The new Facebook app for the iPhone is great too. A great little app that makes it even easier to use Facebook than their pretty slick web interface. I also have the WordPress App for the iPhone so I can update loads of my blogs on the phone and even write blog posts offline if I wish.
I already paid for an app too, as recommended by Enda Crowley. It’s the Tuner app and allows you to listen to Internet radio on the iPhone. So finally I can listen to Phantom 105.2 anywhere in the country or the world (via wifi). There are thousands of apps you can download for free or pay for on the App store and all this via a firmware upgrade.
Can’t get a new iPhone? Try and get one of the older ones.