According to Iphone Simm Free the iPhone 1.1.1 update does not “brick” an iPhone but makes it no longer capable of being used on non-AT&T networks. So for those in Australia trying to use Telstra’s network to run an Apple iPhone you are out of luck until a fix is produced by IPhone Simm Free.
According to MacWorld however the re installation of an AT&T SIMM may not be as simple as it sounds and perhaps some unlocked phones may indeed be “bricked”.
If the latter is true I don’t think this is good news for Apple, hundreds of angry, albeit warned customers cannot be a good thing.