Apple iPhone 2 3G - The Rise or Fallacy of Apple?

This week the Release of the Apple iPhone 2 3G was announced by Steve Jobs at Apple’s World Wide Developers Conference.
The news was both sour and sweet, the sweet being 3G download speeds, GPS Tracking and Third Party applications, the sour however was very sour indeed.
Apples iPhone 2 can now only be bought on a 24 month contract, how many people keep one phone for that long? The worst part is may iPhone users will still be locked into an 18 Month contract they signed for a free iPhone.
The reasoning behind this is to keep a strangle hold of power on the distribution of the iPhone so the right people are making money out of it, and in the near future many people are forseeing a u-turn by apple similar to the removal of Apples DRM systems last year.
There are other little quirks that still have not been fixed, including thnigs such as Video capture capability, or even Multimedia messaging, something found in the most basic of phones for the last 5 years.
All in all there is a lot of disappointment in the air, though I do not doubt that apple will still shift a huge amount of these when the iPhone 2 is released on the 11th of July.