I was in the O2 shop in Aberdeen the other day, finding out some information about 3G modems, and I was told some interesting information about the iPhone 3G pricing.
Aparently, it'll be around £300-400 (price not confirmed yet, she said), but will come with 6 months worth of unlimited data (Wifi and UMTS/EDGE/GPRS).

Sounds like a great idea to me! I spend most of my money on data, but I don't use my phone that often to warrent a contract - pay as you go iPhone sounds perfect for people like me!
Let's just hope the pricing comes in at the lower end of that bracket

to be honest the £10 p/month unlimited data bolt on is pretty sweet anyway. I pay £7.50p/month with Vodafone for 500MB per month, although I use no where near that!

O2 put the pay&go prices on the web for a few hours when 3G iPhone was announced.I don't think 350 is bad as when the unlock is released can get a cheapish 3G iPhone to use on a network I want.