To stop the moaning, they should offer the iphone at cost with an ipad data plan as an option.
I bought my iPhone 4 at "cost", £499 for the 16GB SIM free.
That left me to choose my contract or PAYG options carefully and not be tied to anything. As it turns out I went with the 12 month O2 Simplicity plan with 600mins, Unlimited texts, 500mb 3G data (unlimited until end of October 2010), and Unlimited WiFi (cloud) access. £20 a month.
When I bought my iPhone 3G on PAYG from Apple it was £342 for the 8GB and was tied to O2 out the box.