again, i don't think I'll feel good if I bought a used 1st gen iPhone. I'd have to hack it and everything. I want the full experience and not the dodgy feeling you get when you hack things.
You're not hacking anything...it cannot possibly be consider a hack when tools like winpwn is available.
Get your facts straight and make your decision. iPhone first gen is far more useful than the touch, and if you get one with warranty, you are likely able to swap for a refurbish one anyway.