So...existing users not upgrading to 3G get the update behind almost everyone else in the world (other than those who were lucky enough to get the sneak update to work yesterday - not me, got an error on multiple tries). When we try and update, the iPhone gets wiped and then iTunes can't reactivate.
BrickFest 2008.
This likely doesn't happen if Apple had rolled out the update for existing users yesterday. They clearly had a working update, and then we wouldn't be trying to update while they're busy signing up new 3G subscribers.
As a Day #1 adopter of the iPhone, I'm getting a little sick and tired of Steve Jobs kicking me in the swingers.