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Anonymous Programmers Reveal iPhone Unlocking Software
CNN reports details of a group of anonymous programmers who are planning to sell iPhone unlocking software on the Internet. They demonstrated the software hack for CNN and had a T-Mobile sim card working moments after removing the AT&T sim card. This is bound to stir up a lot of controversy: in the US iPhones are supposed to work only on the AT&T network in the first two years according to their agreement with Apple.
I don't know that you really understand the corporate mindset behind locking down of phones. It's not about making the hardware cheaper, on a world scale it's already about as cheap as it's going to get - America is part of a small and unique set of countries in which the phone companies have given people the ability to get a desirable object 'right now', often with no up front payment - it feels like it's free. The contract already makes the phone company more money than what they paid for the handset, plus enough to keep their systems running, along with a little extra to bolster the profit margins.
They've found ways to make even more money on top of this by tweaking firmware to force customers to pay extra for things they could have already done for free. This is a cash cow, nothing less. People want the phone as soon as they feel the urge to have it, the market built itself around this desire. It's not wrong, I don't even think that it's bad. After all, even in America people can still buy a phone outright. They have a choice.
http://iphone.fiveforty.net/wiki/index.php/GUI_App lications
There are currently 32 native iPhone apps on that page including 8 games, an AIM client, 2 IRC clients (not including BitchX), a fully functional VT100 terminal, RSS, eBook readers and much more with the development constantly growing. These are all open source and written in UIKit/Cocoa, with other apps happening that aren't listed there.
Just because the application development isn't officially Apple sanctioned doesn't mean it isn't happening.