It looks like it is possible to roll phones with the 1.1.1 firmware back to 1.0.2. A good thing if you want to run 3rd party apps. Eventually this may open the door to unlocking the phone again. The method requires a handful of 3rd party apps, and jumping backwards through a few hoops.
Apple’s BS claims of unlocking causing “irreversable damage” to the iPhone software are looking pretty bogus right now. Big suprise.
I haven’t tried it yet, but the ability to run 3rd party apps is looking more appealing than Apple’s mediocre updates.