I have yet to find the EULA on my iPhone? There is a section called Legal under the About section of the iPhone, but I can't see where it states that Apple has the right to disable the phone if no active phone service is on it. Has someone looked this up? Where exactly is it? Apple's website hasn't been updated with the iPhone EULA from what I saw.
Whiners stop whining. Apple and AT&T don't have to disable the iPhone so you can't endrun it by not syncing to iTunes. A two year contract is required to use it. You agree to the terms. It says that updates and upgrades may be required to continue to use iPhone. Again, updates and upgrades may be required to continue to use iPhone. If you don't continue to sync, you'll lose out on what will prove to be an essential update/upgrade. It's reasonable. And smart.