O2 iphone exclusivity is going to prove pretty damaging to other providers, this 3G iphone is going to have huge takeup, and the other providers are just going to have to sit there and suck it up, and wait for other mobile manufacturers to come up with an iphone killer, which at the moment looks like a long wait in my opinion.
Apple will probably open the phone up to other providers, as soon as the exclusivity contract is up, as is apples trend with other suppliers like ATI and nvidia, it likes to trade them off against each other competetively, I doubt Apple will be happy to stick with a single provider long term.
Any iphone killer would have to utilise a similar large screen touch sensitive interface system which copyright probably limits them on achieving.