Rumors of the iPhone 3GS already being cracked have been confirmed and guy who did it says he is sad.

Utilizing the same 24kpwn exploit that cracked the iPhone 2G, George Hotz has managed to crack the iPhone 3GS in a week's time. He had some help, yet still seems to be disappointed in the challenge that Apple presented them.

The same tools that were used in the past to jailbreak the iPhone will be able to be used on the iPhone 3GS as soon as they get a little bit of updating. George commented on the hacking,
"On a personal note, I'm sad. Apple, it took me a week to break through your new defenses. And to let us reuse an exploit like that; 24kpwn was so 5 months ago. Although I imagine it must have been painful watching the devices roll by on the assembly line, knowing they all had a hole in them and you couldn't fix it. "