I don't know if this is relevant to this post, but if you are on a contract with O2, for £35 a month, if you sign a 2 year contract, the iphone is free. Also, if you sign up for a 2 year contract, the £35 monthly tarrif goes down to £30...that tarriff gets you something like 600 minutes and 1000 texts (not sure about the texts, but its a lot) and a bolt on (I got unlimited web browsing)
I just changed to this tarriff and debated getting the iphone, but as I take lots of pics with my mobile (as well as a ton of texting and gabbing to my girlfriends about shoes and babies and stuff) I chose a Samsung Tocco Ultra which has an 8 megapixel camera, as opposed to the iphones 2 mega pixel camera. I am digging the Samsung phone.
Again, this might not be relevant, but if you fancied an iphone, this might help you out.