What do you do with an old iPhone????? by Chris Breen

http://www.macworld.com/article/135243/2008/08/oldiphone.html?t=213 (full article)

"It’s clear, you’re an iPhone enthusiast. No, it’s not the slightly smushed-in left-ear that indicates you spend hour after hour on the phone, the Apple sticker that adorns your forehead, or the unconscious typing motions you make with your thumbs. Rather, it’s the two-layer bulge in your front pocket—created by your original iPhone and your new iPhone 3G.

Yet is it really necessary to have two iPhones—particularly when the original no longer works as a phone because you’ve passed along its activation to the shiny new 3G?

Perhaps.
To find out, let’s examine some of the things you can do with an old, inactivated iPhone.

Sure, it hasn’t got 3G capabilities, but there’s life in this older iPhone yet.

Pass it along AT&T would love for your nearest and dearest to purchase their own iPhone 3G as well. But, barring that, the company is more than happy to lock them into a new two-year contract for your old iPhone. You’ll learn the ins and out of handing off your iPhone to another in this PDF document from AT&T.
Sell it You can pass along your iPhone and make a tidy sum at the same time.
Keep it When AT&T kills your old iPhone’s activation you lose the ability to make calls, text message, and use AT&T’s EDGE network for an Internet connection. However, that still leaves you with an extremely functional device—essentially an iPod touch that also sports a microphone, speaker, and digital camera."

Check out the full article for complete coverage. See url at beginning of post.