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Rumors abound that some stores are just going with the #suckit approach and handing over the phones sans activation. Maybe this whole forcing to an in-store activation was a poorly-thought-out plan?
At least me.com is finally up.

Glad I manually updated my 1G iPhone yesterday with 2.0 software. The software update simply rocks - THIS IS WHAT THE IPHONE SHOULD HAVE BEEN 1 YEAR AGO. Feels like a brand new phone now (save for the scratched chrome, scuffed back and dingy USB cable). Plus, my AT&T bill is cheaper than all the folks going through the pain of activation today, if they activate at all. But hey, who gets the iPhone for it's phone capabilities, anyway?

The servers went down intermittently last year too at iPhone 1.0 launch - it just wasn't compounded by AT&T trying to thwart unlockers by requiring in-store activation. Kicking myself for not updating yesterday.