That thread was too long so I'm starting a new one. With the REAL answers. 1. "The phone is not subsidized" - Yes it is. Just because it's not a rebate doesn't mean it's not. 2. "Why can't I buy it without activating it?" - Because then you'd have an 8gig iPod Touch for $199. Apple sells those for $299. Since AT&T is subsidizing each iPhone, THEY would lose money on it and make ZERO from you. 3. "You can't buy it online." - True, for now. I'm sure they'll set it up where you can later. Just like other cell phones you buy online that come to you activated (or semi-activate). 4. "I want to use it on another carrier." - Why? 3g and visual voicemail won't work. 5. "How is AT&T going to get their money back" - rumors are that rates for unlimited data will go up $10/mo. So that's another $240 for 2 years. Very few people won't but this if they buy an iPhone.