According to this http://www.engadget.com/2007/07/02/teardown-reveals-iphone-parts-cost-two-bills/]engadget article The 4gb iPhone only costs $200, and the 8gb $220 in parts to make. Now if the cost is that low I would love it if some one were to manufacture their own iPhones and sell them online without the OS. And have a place like this which had their own iPhone OSX without all the locked out issues. Id be willing to pay 300-350 for those.

I contemplated buying another 4GB iPhone, and modifying it with parts from Apple(if parts are allowed) bringing it to 8GB.

I wonder if there is a way to modify it like a USB/PEN/THUMB drive: allowing connection directly through usb. Perhaps de-soldering the initial chip and re-soldering on a USB drive of an equal.

Sincerely,
~ʇıqʞıʇɐʇs