Ok, so right off, lets be clear.. There is pwnagetool and pwnage. First, read this from iphone-dev..
The ‘baseband’ is the generic name given to the internal components of the iPhone that handle the phone calls and Internet access. This ‘baseband’ is a tiny and unique independent computer system that runs inside your iPhone, it is separate to the main system that handles the applications (such as email and google maps) and it talks to the main part of the phone over an internal communications network.
Ok? Now this..
SIM Free/SP Unlocked/Factory Unlocked iPhone 3G
This applies if you bought your iPhone 3G for $$$$$$$. This model of iPhone 3G doesn’t have an Service Provider lock (aka factory unlocked) and you are able to put any SIM card into the phone and get service. Your phone is already unlocked so you do not need to worry about baseband updates, simply upgrade to 2.2 using iTunes and then use QuickPwn to Pwn and Jailbreak. This will add Cydia and Installer too.
If you bought an unlocked phone, you know who you are. Odds are, if you do not know what a SIM Free phone is, you most likely do not have one.
Locked iPhone 3G – Preserve Baseband
This applies if you have a locked iPhone 3G and you wish to update to 2.2 but preserve the iPhone’s current baseband software. Preserving the baseband will give you the maximum chance for any upcoming software unlock. To upgrade your phone to 2.2 and preserve the state of the baseband you need to create a custom .ipsw with PwnageTool. This custom .ipsw will not contain the baseband update but of course will still allow all the cool new stuff from 2.2.
I do not expect many people will need to do this, but if you plan to go overseas, a lot, or AT&T may not be an option for you in the future for some reason, then you may want to preserve your baseband.
Locked iPhone 3G
If you are using your iPhone with one carrier and have no interest in the possibility of an iPhone 3G unlock in the near future then just restore or upgrade to 2.2 using iTunes and use QuickPwn to Jailbreak and add Cydia and Installer.
This is most of us. If you are using AT&T and plan to keep using AT&T, you want to go this way. That means you DO NOT NEED Pwnagetool. So do not use it. Instead, just upgrade to 2.2 and use pwnage.
All good? Ok, here is the site with more info on what I just posted as well as links to the files you need and info for non 3G phones.
As for me, I have not heard from enough people that the wireless or working much faster, so just to get google street view, eh.. I think I’ll give it a miss. But who knows, I may get bored and do it anyway just as an excuse to give the phone a clean wipe. Kinda like the days of win95 and win98, where you want to reinstall every now and again just because… well it was windows.