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The people on here who argue that tinkering with hardware that you own is somehow illegal or immoral kind of freak me out. What if I bought an iPhone, and then instead of signing up for AT&T's service, I smashed it into a thousand pieces on my driveway? Would that be okay with you people? I'd still be using the hardware in a manner AT&T didn't want me to.
By the way, Businees Week (not exactly a bunch of hippie hackers) agrees that there's nothing illegal about hacking the iPhone: http://businessweek.com/technology/content/aug2007/tc20070827_230698.htm