Is the iPhone 3G S too expensive?

Now that the initial fanfare from last night's iPhone 3G S release has died down, and O2 has officially released its pricing plan, people are waking u

Now that the initial fanfare from last night's iPhone 3G S release has died down, and O2 has officially released its pricing plan, people are waking up, rubbing their eyes and saying "How much??"

The iPhone is never the cheapest of options, but many existing O2 iPhone 3G customers are furious that they will have to buy themselves out of their contract, especially given the fact that upgrading to a 3G iPhone was heavily subsidised and cost little if you signed up to another 18-month contract with O2.

The a petition on Twitter if you're that way inclined, and people are hashtagging #O2fail all over Twitter.

For current iPhone 3G users, the choice is to shell out to get out of your contract, or wait until much later in the year, or January 2010 to get a 3G S, by which time, the next iteration of the iPhone will be round the corner and you'd be bonkers to upgrade.

Now, it might be naive to think that you can upgrade before your contract is over, as mobile operators seldom allow this. But the root cause of all this online fury is that O2 had previously allowed this, so users feel cheated this time round.