Apple released the new firmware for the Iphone today. Along with some relatively minor bug fixes, it ensures that your Iphone will not be able to do anything cool that Apple didn't intend.
Third party apps can not be launched, though they remain in the flash taking up space. People that have unlocked their phones to use providers other than AT&T can no longer use ANY SIM cards including valid AT&T ones!
Needless to say, do not update your Iphones! The ability to give apple more of your money through the itunes store simply isn't worth it.