I just finished reading an article on PC World that was talking with Steve Jobs about how demand will outstrip the supply of iPhones. Down at the bottom of the article I read this interesting quote from Jobs about the EDGE network and the use of wifi:

Jobs also downplayed concerns over the iPhone's dependence on AT&T's EDGE network, which is slower than 3G (third-generation) networks.

"You know every (AT&T) Blackberry gets its mail over EDGE. It turns out EDGE is great for mail, and it works well for maps and a whole bunch of other stuff. Where you wish you had faster speed is on a Web browser. It's good enough, but you wish it was a little faster. That's where sandwiching EDGE with Wi-Fi really makes sense because Wi-Fi is much faster than any 3G network," Jobs told the Wall Street Journal.

He said the iPhone had been designed to switch to Wi-Fi when such networks are detected.

That last sentence is what caught my eye... "the iPhone had been designed to switch to Wi-Fi when such networks are detected".

Can you say security hole? So it is just going to connect to whatever wifi network it can? I sure hope that it gives you a choice in the matter of which node to connect to. I know for a fact that hackers everywhere will be setting up open access points just to see what data they can get from the traffic that people's iPhones generate.

source: http://www.pcworld.com/article/id,133582-pg,1/article.html