I knew it. Back when I attempted to update my iPhone, only to have both the update to iOS 4 fail and the backup also fail to recover my setup, I knew something was up. This report from Ars completely knocked me out of my chair as this is basically the path that was laid out for me. My iPhone 3G bricked, then it went to my mother-in-law after AppleCare fixed it and I ended up with an iPhone 4.
Apparently, this is not an uncommon occurrence. So much so, that Apple is being sued over the issue of what is being described as bricked iPhone 3G in alleged hopes of getting people to buy the newer model. Now in the article, it was made evident that no one really knows if the complainer actually tried to restore the phone, as I did when mine went south after a massive iTunes restore fail. But one thing is clear: Apple might be hiding something about the upgrade process.
Today, I own an iPhone 4, due to my needs with work and the fact that it requires an iPhone. Despite my bitter experience with the fact that the 3G had no business being prompted for an unnecessary update that created a lot of hassle and lost data, I am still an iPhone user. My advice for 3G owners, if you are planning on updating, good luck. There have been lots of successful 3G upgrades and likely just as many unsuccessful ones. But when I cannot even restore my phone from a known working backup, something is seriously wrong and Apple needs to rethink iPhone models compatible with iOS upgrades. At the very least, a warning would have been nice.