This was a very shrewd move on Gizmodo's part. Having looking it over elsewhere on the Internet, for the benefit of Tom's readers that invariably fail to read linked articles and seek out other ones, I'll cover some of what appears to be the case here.
■Apple DOES have the right under California law to reclaim the device. And they did exercise this right to claim it.
■However, the claims that it was "stolen" is basic corporate saber-rattling. As it was taken from a public location, and was left behind, it very clearly falls into the "lost" category, not "stolen."
■Gizmodo is returning it. They got what they wanted; and as they noted themselves, the act of returning it effectively confirms ALL rumors. Basically, they got Apple by the balls when it came to destroying their secrecy.
■Apple remotely disabled the phone once they discovered it was lost. Hence, no personal information or such was snagged. (it's doubtful that, as an engineering prototype, that it'd have any personal information anyway, aside from potentially the directory)
[citation][nom]HalJordan[/nom]So it raises an eyebrow.[/citation]
Not really. For one, the device was lost in friggin' SILICON VALLEY, where a preponderance of the jobs are tech-related; furthermore, locations like bars tend to each target a specific demographic; if an Apple software engineer likes to hang out a place like that, chances are a majority of their patrons are tech-related people; most of them would probably know an iPhone on sight.
Also, looking through Gizmodo's own pages, they revealed that they didn't find it; they bought it off someone else. Chances are the "someone else" CERTAINLY knew it appeared to be an iPhone. (heck, who among even the tech semi-savvy WOULDN'T recognize an iPhone if they saw it?) Apparently, they knew enough, (likely perhaps owning one themselves, or certainly had friends with 'em) to tell that it didn't look like an ordinary iPhone. Gizmodo admitted that they didn't know if it was a 4G or not, but apparently were willing to take the gamble with $5,000US. And, well, the gamble certainly paid off.