3 weeks ago I asked a colleague travelling to New York to buy me an iPhone. Which he did (worked out at 480 CHf). The phone had the 1.1.1 firmware.
That evening I was able to hack and unlock the iPhone using the instruction on
www.hacktheiphone.com.
I am now using it with my Orange SIM. I am an Ultima contract which means I have a data plan already with a fixed tarrif. I am getting the same sized bills as I was with my Nokia which had push emails enabled.
I was however lucky, because that week Apple released firmware version 1.1.2 to coincide with the launch of the iPhone in the UK and Germany. 1.1.2 has all the international features such as language and keyboard layouts.
I haven't tried upgrading to 1.1.2 yet as it is not as straight forward as it was for 1.1.1.
Also, newer phones that come with 1.1.2 pre-installed have a new bootloader that has yet to be hacked. This means that if you buy an iphone in the States now, it is uncertain that you will be able to unlock it.
That said, I love my iPhone, the interface is just superb and I was a sceptic at first. There are some short comings, like no MMS support. Bu chatting with SMS is just a pleasure now, even with the touch screen keyboard. It's also a bird puller :-) Whip the iPhone out in any bar in Zurich at the moment and you get attention.