Over at InfoWorld, Tom Yager found out that even amidst the newest iTunes update (7.3.2)/iPhone Firmware 1.0.1, his suggested method of ‘activate and cancel’ still works! What ‘activate and cancel’ means, is that you activate the iPhone, and then cancel the agreement with AT&T within 14 days, and the iPhone will still work and you won’t be penalized for the cancellation (if cancelled within 14 days).

I like the idea of this personally because I think it’s completely stupid for the iPhone to be completely locked out unless you agree to a 2-year AT&T agreement. I mean, can you imagine how many would buy the iPhone, just for the widescreen iPod part of it? For PDA funtions? This provides a pretty safe way of doing it without having to deal with hacks. Cool!

You can check out the rest of the article here.