Update
Yesterday, I finally gave up and went to the beach for the afternoon without a working iPhone. Came back around 6pm and had emails:
2:40pm - "Congratulations, AT&T is transferring your number to your iPhone..."
4:26pm - Second AT&T email thanking me for my purchase and telling me that AT&T was "currently processing my order."
5:40pm - "Activation complete" email telling me to reconnect my iphone to my computer to complete the process. There is a link to click but I didn't click it, just went into itunes.
At this point I was able to start playing with my phone but was still receiving calls from my other phone. Went out to a friend's house, playing with my new iphone.
Received my first call around 11:30pm.
Very unfortunate that it was such an awful process, but I do have to say that the phone is cool enough that I'm glad I didn't take it back, it is worth sticking it out to wait for.
Also, I'm finding that I don't mind the Edge speed as bad - Edge has picked up in speed, but the wi-fi really makes up for things. Also, the wi-fi antenna is so strong, I can poach wi-fi signals all over the place so it is well worth it.
Just to tell you how my iphone has already made my life easier:
1) Got the address to the pool party last night, which I looked up in google maps, and got directions in about 10 seconds - good thing because the house would have been impossible to find, and my friend's directions were not helpful.
2) We ordered pizza late last night, had a race with someone who had a laptop connected to wi-fi and a landline phone to get ahold of the pizza place. I used my iphone and beat him hands down.
3) Got lost finding my way out of the crazy winding neighborhood streets on my way home, looked up the intersection on google maps, and was back on my way in seconds.
4) Looked up the traffic online, figured out they had shut down one of the freeways for construction, so I took, an alternate route, would have been stuck in traffic for over an hour had I not had my iphone with me.
SO far, definitely enjoying it! Good luck to all you out there still waiting - it is worth the wait!