The iPhone isn't as sensitive as I originally thought. I have dropped both my iPhones, original and 3G, and other than some cosmetic no problems. The moisture on the other hand I really believe is a load of crap. First, there are two sensors, Blackberry has one, and it is behind the battery, so you REALLY have to get it wet to set it off. iPhone on the other hand, both sensors "exposed" in areas we use all the time...the earphone connector and the dock connector. I would be curious how many users here have "moisture" damage according to the sensors. I love the iPhone, and will continue to love it, but I really think that this is just a way to make sure the returns stay down. From what I have been told by the Genius'es at Towson Mall Apple store, not even an Apple Care warranty will cover that...the only thing you can hope is that it happens inside of 30 days and you can just return it I guess.