Option 4: I had a refurbished 1st gen iPhone. I upgraded to the 3G and gave my 1st gen to my girlfriend for free 😉. Then I really missed my 1st gen (I love how it looks and feels) so I bought another one on eBay (8GB). The 8GB 1st gen was kinda scratched and had a scratch on the screen... so I didn't like it. Then I heard that Apple was selling refurbished 4GB iPhones on their website. Sadly, I missed out on that deal, but I was still able to get one of those refurbished models (sealed in the box) from eBay for twice as much as Apple was selling them. Then I unlocked it and threw my old pre-paid sim card in it and use it as my backup iPhone/test phone. It's cool when I wanna experiment with different hacks with it so I can find out what works and what doesn't before I try any of that crap with my precious 3G. I don't wanna screw up my main iPhone, so I test stuff on my 1st gen first. Sometimes I carry both with me. I really wish the 3G was as rugged as the 1st gen 🙁
Surprisingly, neither of the iPhones suffered any visual damages. They both seem to be running fine too. No cracks or anything! I sure am glad I have those Sena cases... they're padded well.