All of the "O2 are ignoring loyal customers" etc etc moaning is ridiculous. If you signed up to an 18 month contract, see it through, or pay out. The iPhone is a great phone, but still just a phone! Us iPhone users are not special, as some amongst us clearly think. We are just O2's revenue stream. As are the users of nokia, blackberry, samsung etc. They aren't allowed to upgrade early, and dont moan if they aren't allowed to when samsung's newest flip phone arrives. Give it up.
As for the upgrade, yes the 3Gs is a great upgrade, but so is 3.0. And that arrives next week, and it is free! It will be like getting a new phone. I will sit around and wait until next June when the next iPhone is likely to come out, and sign up right away as my contract will have run out. If O2 could let users upgrade every year, why on earth would they spread the subsidy of the phone over 18/24 months?!
And for all the users who have come to the end of their iPhone 2 G contracts, or are about to sign up to an iPhone contract for the first time, please do not complain next June when another one comes out. A contract is a contract. If you are worried, buy the phone pay & go, and use a simplicity sim. then you wont be tied down and wont have to complain when O2 rightfully deny you an upgrade early.
My 2 pence worth. Rant over.