Sorry, that's simply not true.
UK 3G is patchy - covering 75% of the population probably equates to far less that 50% of the actual land area. That's why marketing people who work for cellphone companies always talk population, and not square miles - it's a simple trick.
I know - I've used it! - Try using UK 3G outside a city center!
Mainland Europe is good in places - Spain being way ahead of most with 3G.
However, as I stated, there is no single European carrier, with 3G, that will sign-up iPhone across Europe.
The deals will be done by country, and roaming would thereforee be required.
I never said Europe was behind the UK - they are (in places) way ahead!
We know that O2 appear to have landed the iPhone deal - any reasoning around that deal going to O2 is pure speculation on your part.
You're welcome to speculate, and you have (at length), but that doesn't make any of it factual or relevant.
As for being distant from the UK market - I travel from US-UK-US, and have an office in the UK. I have to use the UK network - I still keep my Voda SIM and a tri-band phone - I know just how good/bad it is in the UK, and I can directly compare with the telco's and service I experience in the US.
3G in the US is patchy as well - same deal as the UK and a few years behind in many areas.
Demand for the iPhone.. Time will tell - Can you name me any phone that has sold 700,000 units in the first week of release? Other than the iPhone of course.
It's almost as if you don't want it to succeed....
As for the impact on the provider - it's huge - getting let's say 350,000 new subscribers (being conservative) in a single week, each with a 2 year contract, is a significant step change.
Any telco would like to have a product that delivers that many new customers.
As for 3G requirement being overplayed..
Well, I'm using an iPhone, I use it every day on EDGE and wi-fi. I've had mine since launch day - used the Email for work and home, surfed the web, used Google maps, apps, SMS, iPod etc etc - I think that qualifies me to say that:
a) It works
b) It works without 3G
c) 3G would be 'nice to have' but is not essential or a deal breaker for the functionality of the iPhone.
I really hope you get your 3G iPhone, but to suggest that it will fail if the first model is non 3G is overly negative.
You're dooming the product, before it's even been announced for release, based on zero actual iPhone experience.
Like I said - almost sounds like you're willing it to fail.