The phone might be great, but what about the fact that you're forced to use AT&T? Their service in San Francisco, CA for 3G is pretty abysmal....I'd imagine it's because everyone and their brother has an iPhone and they're just over saturated. But still!
A friend sold his 2G to me for $50 when he upgraded to the 3GS, and I really like it. I use WiFi when I can, but sometimes am forced to use Edge which is s-l-o-w on the iPhone but for some reason is more usable on other non-3G phones I have.
It is jailbroken and unlocked so it works on my T-Mobile line.
But it is an outstanding phone. Even the 2G version (running 3.0) blows away almost every other phone on the market.