Yep, Apple melted. They flew too close to the sun. They need to stabilize things then give every engineer and analyst a three week vacation and a free flight to Hawaii. They have the money, might as well spend it on a good cause.
In the meantime, an essential article on iPhone troubleshooting …
…Your only solution at this point is a full restore of the iPhone. Hold down the Home button on the iPhone, plug it into your USB cable or dock, and wait until you see the special screen shown at right, then release the Home button.
iTunes will then tell you it’s found a phone in recovery mode, and you can then begin the long process of restoring it. First iTunes will reinstall the latest version of the iPhone’s operating system, then it will restore your applications (including data you’ve created in those applications) from your last backup, and then—eventually—you’ll be able to sync your music, videos, photos, and other data back to the iPhone…
I didn’t know restore would also bring back application data, though I’ve hunch data isn’t being synced for Apps that can’t update.
Great article, keep it by your sync cable for regular consultation.
Parenthetically, Macworld is doing surprisingly good work these days.
Update 8/14/08: Yep. As I expected doing the unsync/sync hack for non-updateable Apps does not restore any data.