I bought my 3G from BestBuy last week and they are holding a 3GS for me for Friday so I have not had any issues with my experience.
I did ask them about the Insurance they offer and it is quite a bit of money but you get a lot. It basically covers the phone for everything including a MAC Truck running it over and they will replace it with a Brand New Refurbished phone within 5 days depending on availability. The cost is $14.99 per month, so basically in a year you will spend $150.00 or almost the cost of the phone itself, however not having insurance you would have to pay full retail which is $400-$600.
If your like me I take care of what I have and if I go somewhere where my phone can get ruined, I leave it home, but it is the only insurance option that I know of and Apple/AT&T will not allow AT&T to provide insurance.