The upgrade complaints are a COMPLETE SIDE ISSUE. Sorry for shouting, but it's the truth. No carrier allows you to break a contract, mid contract, on a subsidised phone for free. Get over it. Buyer beware.
The issue in the UK is that Apple made it clear they want to expand the user base. They are dropping the price of the 8Gb 3G and have the same/lower prices for the new model in the US while in the UK, the prices are all going UP. Making the iPhone even more expensive than it is now. This will kill new uptake for all but the most fanatic/rich in the UK and stifle user base expansion. O2 are publicly defying Apple's business plan.
The odd thing is in this recession, people would have been prepared to jump on the iPhone 3G at £55 and 3G S 32Gb at £160, but at £276 it's a pain.
Today iPhone 3G 16Gb on £35pm plan: £57.74. Next week iPhone 3G 8Gb on £35pm plan £96.98 That is backward thinking.
That is the fuss. Stuff the upgraders, they are trying to break a legal contract for free. It's the new pricing the BBC/Guardian are focussing on and the one Apple will have to face.