OK, look. Let's exercise some restraint and get some perspective here. I'm just as pissed off as the next person that O2 aren't offering PAYG iPhones on release day, but the fact of the matter is that it looks like they're not.
Don't get me wrong, I think the iPhone 3G is a great device, but if you've already got a 1st-gen iPhone, the new one isn't going to revolutionise your world. There are some nice things that make it worth an upgrade, but there's nothing new in it that should cause people to get this hot under the collar. IMO, the AppStore is probably the coolest thing on the new iPhone, but we'll be able to get that too!
Personally, I do think O2 have handled this badly. I'm not in a position to take on another contract right now (almost anyone already in a contract is going to be in the same position), so PAYG was the only option for me. I am on an O2 contract, but not an iPhone O2 contract. I signed up for the updates on their PAYG website and was recently sent a text message telling me to await some exciting new news. As it turns out, this exciting new news seems to be that I'm going to have to wait even longer for the device - which in itself is particularly bad planning and management.
So, what we - the disgruntled few - need to do now is come up with the best way to stick it to O2 that we can think of. My 2p's worth is that O2 will only be making a few quid on the PAYG iPhone, and they're expecting to make it up elsewhere on the actual calls. So, when O2 do deem us worthy enough to have a PAYG iPhone, we should buy it, activate and unlock it, and then *** off to a different network, flicking O2 the bird as we go.