Do you really need an iPhone 3G? We give you 5 reasons it’s the world’s best cell phone—and 5 reasons to wait to buy one or just keep rocking your 2G iPhone.

We admit it—after hearing Steve Jobs’s keynote at the Worldwide Developers Conference on June 9, we all wanted an iPhone 3G. Badly. There’s plenty to like about the iPhone’s second coming, but we wouldn’t be doing our jobs if we didn’t show you both sides of Apple’s newest smartphone, the good and the bad. In fact, the original working title of this article was “10 Reasons You Need an iPhone Now,” but in researching the story, we couldn’t look past the device’s clear downsides.

So in the spirit of the proverbial angel and devil that sit on either shoulder when you’re weighing a decision, we present both the good and the bad news about the iPhone 3G, so you can you make the most informed choice possible.

The software has been updated to 2.0.1, giving us zippier performance and fewer bugs. Apple is ramping up production to keep pace with the public's rabid demands. So what's coming next for the iPhone 3G? Oh, lots.

For the brave beta testers first adopters who ended up with iBricks, or couldn't even get the application to launch, the iPhone Dev Team has PwnageTool 2.0.1 ready for download.

The update fixes the following problems:

- It auto-finds the bl39 and bl46 files better, if they’re on your computer

- It creates the ~/Library/iTunes/Device Support/ folder if not present, which should help with some 1600 errors people have been having.

- Many people have reported the PwnageTool not starting up at all (the icon never stops bouncing). This issue should be resolved now.

- The Sparkle AppCast URL is fixed in this version, so automatic updates should work for future releases.

The team recommends downloading the update unless you were able to unlock your iPhone with v2.0.

Don't forget kids, all this hackery can cause havoc on your shiny new toy. Proceed with caution.

The iPhone Dev Team has decided to forgo weekend fun and release the iPhone Pwnage Tool 2.0 today. The release is just in time to ruin any Saturday night plans you had, and keep you glued to the warm glow of your newly jailbroken, and unlocked, iPhone. 

Pwnage Tool 2.0 will jailbreak any OG iPhone, and iPhone 3G, that is currently running iPhone Software 2.0. The tool will only unlock the OG iPhone for now. The iPhone Dev Team is currently working on a version of the Pwnage Tool that will unlock the iPhone 3G. 

As with any new unlocking/jailbreaking tool, you might want to wait until the tool has been tested by brave super nerds before taking the plunge yourself. 

For the brave, be patient, the Dev Teams servers are being hammered right now. 

So those awesomely unstoppable bags of wacky known as the iPhone Dev Team, who roam through the countryside jailbreaking iPhone and iPod touch firmware, are getting set to release the first PwnageTool for jailbreaking the iPhone 2.0 firmware update that was only unleashed, oh, five days ago.

But the team announced on its blog today that the PwnageTool won't be able to unlock the iPhone 3G to run on other wireless carriers. If you have an iPhone 3G, the tool will jailbreak the handset to run unsupported apps while still maintaining App Store support. 

And the team is still working on a "baseband unlock" of the iPhone 3G, as well, so I guess someone should start a pool to see how quickly they get that accomplished. (Those cats are wicked smart, yo.) Read more about it on their bloggy blog.

It only took five days and the iPhone Dev team has already managed to jailbreak the new iPhone 3G, though there is no official release annoucement. Anyone with the OG iPhone, iPod touch, or iPhone 3G will be able to partake in the pwnage. Third party apps will still be accessible, as well as other cool hacks like video game emulators, video recording capabilities, and maybe someone, somewhere will figure out how to create a hack for cut and paste. Seriously.

Check out the video after the jump.