Seriously, I agree with yuenck. If you don't mind having a cracked iPhone 1.3 Apple doesn't approve of, why not just find a way to get an open iPhone 2? I find it highly unlikely you couldn't get one from overseas or that somebody won't find a way to crack "local" ones.
In regard to Sprint, it's likely far from down and out. The huge losses are a result of horrible merger with Nextel, but its core business is still solid. Further, its data service for its PocketPC phones is better and faster for a much lower price ($15/month unlimited). I have a Sprint Mogul and some of my friends have iPhones. I'll agree that the iPhone might look somewhat cooler. The battery life is better. But I have yet to find something my phone can't do that their iPhone can. But there are many things I can do on my (completely legitimate) Mogul that they are stuck without. I'm waiting for the Diamond to come out, which looks like it'll do even more, and, most likely, still more than iPhone 2. Judging from the pictures it'll look cool enough. So I won't do the spiel about blind Apple obedience and trying to be cool and unique just like everybody else. But I'd expect more from the author, who seems like a technically savvy guy.