Does FreeiPhoneSwap Tell The Truth about Original iPhones Retail Values Overseas?

While I was doing my research on which phone to buy, I cam across this article published by the NYTimes. I found out about this company, freeiphoneswap.com, that is trying to buy old iphones from their owners. They offer cash, but it is very little considering the market that exists overseas. On Ebay and Craigslist, owners can make much more.
Here is a excerpt of the article, read it at Nytimes.com

"The company’s Web site repeats the safe recycling line, as does its press release. But Joe Weingarten of FreeiPhoneSwap, who has been soliciting used phones in Miami, gave a different account to The Miami Herald:
“There’s a very big demand, especially because there is a big shortage overseas,” Weingarten said. He added that he has 15 people working with him and he will be doing the same thing at stores in New York.
Freeiphoneswap.com spokeswoman Leah Handwerger said that there is also a high demand for the original iPhones that don’t require an AT&T contract to activate. The new iPhone 3G will only work once activated inside an AT&T store.
This indicates that FreeiPhoneSwap is feeding the vast gray market for iPhones that have been hacked to work on any compatible network, not just those owned by companies with which Apple has signed deals.
With the introduction of the 3G iPhone, the original phone is officially yesterday’s gadget, which should mean that its resale value is plummeting. But it turns out that because of some unusual factors, demand for those phones is holding up surprisingly well.
Techniques for unlocking the original phones for use overseas are already well established, while those for the 3G phones are still under development. And in the United States, Apple and AT&T have made it harder to buy a 3G phone without also getting locked into an AT&T contract, making those phones harder to export or peddle on the gray market. If you don’t care about or can’t take advantage of faster network speeds, or you don’t want a contract, or you live in someplace like China, where there are still no authorized iPhone dealers, the original phone might suit you just fine.
EBay’s marketplace is setting prices for those used phones that make FreeiPhoneSwap’s payout levels look like a ripoff. The 8-gigabyte model is getting bid up to well over $300 on eBay, versus the $200 you would get from FreeiPhoneSwap. It’s not hard to find similar offers on Craigslist.
Is FreeiPhoneSwap being vague about the ultimate fate of traded-in phones because it doesn’t want people....."