Boing Boing: iPhone - the roach motel business model: "It's ironic that a company whose name is synonymous with 'Switch' has built its entire product strategy around lock-in. The iTunes/iPhone/iPod combo is a roach-motel: customers check in, but they can't check out.
And it doesn't stop with the iTunes DRM. Apple and Cingular have been trumpeting the technical prowess they've deployed in locking iPhone to the Cingular network, to be sure that no one can switch carriers with their iPhones. Even the Copyright Office has recognized that locking handsets to carriers is bad for competition and bad for the public.
There's another thing you can't switch with the iPhone: the software it runs. You can't install third-party apps on handset. Steve Jobs claims that this is because running your own code on a phone could crash the phone network, which must be news to all those Treo owners running around on Cingular's own network without causing a telecoms meltdown.
Lock-in isn't good for you. Does anyone really believe that Apple will make better products if its customers aren't free to switch to a competitor? Or that Cingular's network and pricing will be improved by lock-in?"