Except that the iPhone isn't really innovative. Touch-screen phones are plentiful, and numerous devices straddled that PDA-phone boundary for years. Just because Apple says it is reinventing the phone does not make it true.

The old phone was not too hard to hack, but it got secured pretty quickly. I bet the reason that it was so hobbled (no HSDPA, no GPS) was that Apple wanted to see what it needed to do to secure its platform before releasing a phone that is at least comparable to its competition. The 2.0 will be hard to hack, further stifling competition. Best way out? Buy another phone.