The bottom line is that Apple did not want it released in other countries or usable with operators they had not approve so did everything possible to lock the iPhone down. If it was a bug, Apple would have fixed it within a matter of days, not weeks (refer to to iLife 08 bugs!)
While my great news above is not based on any information (apart from my own predictions), it is realistic to assume that an update will not arrive this side of 2008. The most likely date for a FW update, is on Jan 15th 08, some time after 8pm CET!
Why?
Steve Jobs has just finished his Keynote address at Macword 08! We have heard about laptops with metallic black enclosures, updates to many Apple systems, maybe an Apple TV update, a possible ultra-portable laptop, NAND Flash drives and timescales for iPhone world dominance (and a 3G iphone)! Its highly unlikely that we'll hear any mention of the new touch sensitive interfaces that Apple have recently patented.