Yep, they are working phones. I called my wife from one last week to test the sound quality of the iP4. One thing I noticed, though, was that I couldn't get any data to load over 3G. I wanted to test the speed of the 3G connection, so I turned off wifi (tried it on three different phones). In all three instances, I could not get any webpage to load.
I suppose that they don't have data turned on.