I just got home from Best Buy with my free iPhone. I love the 'lol 2 generation old' comments. Every 'advancement' from the 3GS is either purely cosmetic (screen, camera flashys) or still unimplemented speed improvements (802.11n, 4G). The only substantial difference is the processing power, and seeing as my current phone was a free LG that can barely run a calculator and alarm, I'm still set up to be impressed. Where I'm at now, Virgin Mobile has been fine, but I've looked into where I'm moving to and Virgin Mobile has little service there, but AT&T does just fine (Seattle).
I signed for the two year contract, and the activation fee is going to be billed with the first month, so contrary to the article I didn't have to give any money or credit card information at all. I literally walked in and out in thirty minutes and made a phone call with it in the parking lot.
For anyone thinking about getting a new cell phone with a new 2 year contract (which is universal among all carriers if you want to get a free phone of any kind that isn't junk), this is certainly a deal.