I just received my iPhone 3G this morning. Setting up the whole thing was a matter of minutes, thanks to iTunes and... MobileMe, which worked quite well for once.
Now, the question is : what am I going to do with the "old" one ? Simple : I will use my 1st gen. iPhone as a portable device, for presentation and training events. Actually, it turns out that an iPhone without its SIM card is... an iPod Touch (with a camera ;-).
You can then use this 1st gen. iPhone to display photos and videos, listen to podcasts, etc. Connect it to a TV or a video projector, and boom, you get the ultimate presentation gear. Which you can even leave to your customer after the show *. Bonus : if you come close enough to a WiFi hotspot, you gain access to the Internet and all your favorite Web 2.0 apps...
That is the beauty with everything Infinite Loop : you never throw an Apple-branded device away. You can always recycle it for a different usage. I mean, not as Michael Arrington does with his Mac Mini...
* This is a wonderful sales trick I've learned at Agilent Technologies. Each time we were demoing our flagship product - the Mini-OTDR - to a new prospect, we were offering a free loan right on the spot : "we can leave it to you right now, so you can test it by yourself", and that was it. We knew this "try & buy" proposal was a killer.
