@Aigars
I'm pleased to announce that the Linux 2.6 kernel has been ported to Apple's iPhone platform, with support for the first and second generation iPhones as well as the first generation iPod touch. This is a rough first draft of the port, and many drivers are still missing, but it's enough that a real alternative operating system is running on the iPhone.
From: http://linuxoniphone.blogspot.com/2008/11/linux-on-iphone.html
 
At least we're getting closer to a free(d) iPhone ;-)