Just a friendly word of advice to anyone with an original iPhone: Until these issues get resolved (if ever), do NOT attempt a restore. It can essentially BRICK your phone. Here's why...
I ran a standard backup-&-restore on my 1st gen phone (v3.1.3) on Nov 18 -- something I'd done dozens of times over the years. This seemingly innocent process locked the phone in reset mode, and began an incredibly frustrating two weeks of troubleshooting, research, Genius Bar visits and tech support calls to both Apple and AT&T. (This was before very many users were reporting it on the forums, and before the media had caught on -- so there wasn't a lot of info out there yet.)
After umpteen different types of failed resets and misdiagnoses by Apple & AT&T, I started seeing threads (like this one) where users were reporting various app problems -- and that's when the iTunes / new OS sync technology theories started making more sense. While I'm sure these app issues are frustrating, you'll be risking a much worse scenario if you attempt a restore. Once the phone cycles through to the step where it wants to connect to iTunes -- it stops. It won't activate with your provider, and it won't install your backup. It'll basically be stuck at the pre-activation screen, meaning the only thing you'll be able to do is make "emergency calls".
I tried telling Apple what we think the problem is, but no one took me seriously. They just kept saying that my phone was the issue. (You know -- because it's so old, that must be the problem.)
I ended up buying a $30 temp phone while all this was going on. But when I eventually lost hope that anything was going to be done about it, I bought the 4S. Of course, that also meant giving up the $20/month unlimited legacy AT&T plan that I'd had for so many years, and signing a contract for one of the newer, more expensive plans that doesn't include unlimited data.
Anyway... Hopefully this helps someone avoid the giant headache I went through.