The tireless iPhone Dev folks who managed to jailbreak the iPhone 3G within five days of launch have announced that the first Pwnage tool will be released shortly, but it will not support a baseband unlock of the iPhone 3G. The team is still working out the particulars of the unlock and rightfully wants to do it correctly the first time. It will however jailbreak the 3G while maintaining App Store support and unlock your iPhone classic running the 2.0 firmware. [iPhone Dev Team Blog] Thanks Mehmet!
I've been hoping for this. I definitely think there are many more applications to be had on installer that are not present on the App store. Who want to be a $10 3D iCopter when I can have side-scrolling 2D action for free?! Besides, what is the point of unlocking if you didn't pay the subsidized price of the iPhone 3G? You're still spending a ton up front.