Question about selling an iPhone on eBay

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Can someone please validate (or dis-prove) the following information I found online:

Question: Let's say I bought my iPhone last year and I want the iPhone 3G. Can I give my old iPhone to my sister or sell it on eBay?

Answer: No, once an existing iPhone user activates service for an iPhone 3G, their first-generation handset will be unusable as a phone. You won't be able to replace it with another AT&T SIM card and use it to make calls. This also means that you can't buy an old iPhone on eBay and expect to activate it on AT&T's network. However, you can use it as a media player and a Wi-Fi device for browsing the Web.

Does this mean that if in a year I want to upgrade to the newest and greatest that comes out down the line I can't resell it? That would totally blow. Is this the case?
 
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Your Mac's Specs
15" MBP Unibody 2.53Ghz 4GB RAM 250GB HD,VERIZON iPhone 4,SIG P238 ,iPad,6th Gen iPod NANO
You can resell it. If all else fails unlock and jailbreak (Free and takes less than 5 minutes)

Good luck
 

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