I don't know what to do about the OP's issue. However, anyone saying AT&T or Apple bullied them is out of their mind. Apple designed the damn phone, if you like it then pay for it. They didn't come to your house, break your other phone, shove the iPhone in your pocket and hand you a bill. AT&T is a cell phone service provider and just like all other major carriers they require a 2 year contract for service. Any PDA or iPhone they sell is required to have the data plan, not to be a bully, but because that is the reason you are buying that type of phone. If you don't need the things offered in a PDA and the data plan that comes with it, then save money and buy a normal cell phone. Neither case is bullying because you have complete control over phone and service provider when choosing a cell phone.
I never said that I was bullied. On the contrary, I didn't allow myself to be bullied into downgrading my current plan to something more expensive with less minutes, nor did I allow myself to be bullied into using ATT roaming and paying thousands of dollars in roaming fees every time I go abroad. My point was that ATT, by allegedly( we don't know) disconnecting the OP's connection/sim because he is using an unlocked iphone - and maybe forcing him to lock it up or something - is a bully attitude.
I don't recall reading in any contract when I signed one a long time ago that I cannot use my own GSM phone on their network. They may have updated their agreement to state that an unlocked iphone cannot be used on their network, but I haven't seen that and definitely haven't agreed to that.
It just so happens that I really like the iphone and enjoy using it just like people enjoy using their locked iphones. I enjoy it more unlocked than locked actually, since I'm not enslaved to a carrier that wants to force me into doing things I don't want (roaming, data whateve). That's why I don't go out and buy another phone - because I don't want to and prefer my iphone. Does that answer your question?