Well would you look at that, instructions are now available for downgrading your iPhone from 1.1.1 to 1.0.2. It won't downgrade your baseband, meaning so far you can't re-unlock an iPhone that's been 1.1.1-ified, but it's still 1.0.2 in all its third-party application glory. The iPhone Dev Team folks are working on a way to downgrade the new firmware to let people unlock their phones again, but for now AT&T users sitting pretty, and non-AT&T folks can at least do the WiFi thing. There's a video tutorial after the break.
[Thanks to everyone who sent this in]
Read - iPhone Dev Wiki instructions
Read - Hackint0sh thread where the magic happened