subsidised? Nah
"The phone is subsidised through the call plan"
I don't think you can get a subsidised iPhone, and I think Apple insists operators do not subsidise the iPhone. If the handsets are not subsidised, then surely it's wrong for them to be locked to any network. Like you buy a new desktop computer at full price, not subsidised, but you are only allowed to use a specific ISP for your internet connection - now how is that ok?
It's funny how fanboys suggest people who don't want the iPhone must not have seen one yet... I've played with one and - shock - I still don't want it as my main phone and definitely am not paying for one. I don't want a heavy, touch screen, 2.5G phone that cannot use 3rd party apps, that I will worry about dropping or scratching every time I take it out. Network locked or not. On the other hand... I like the idea of the Touch... if it can run 3rd party apps.
As for the $1m damages suit, I reckon it's just a publicity stunt.