We reported yesterday that the iPhone Dev Team will publish their PwnageTool 2.0 iPhone 3G unlocking tool soon. Today the group posted a lengthy blog post that gives some insight into the dynamics of releasing a hacking tool.

The post was triggered by an announcement of George Hotz (alias geohot) who basically said he would release an iPhone 3G unlocking tool called yiPhone if the iPhone Dev Team would not release their tool soon.

George Hotz was affiliated with the iPhone Dev Team before the first iPhone unlocking hack became public. iPhone Dev team says that they parted ways because geohot did not follow the groups rules.
In any case iPhone Dev Team will not jump the gun on the PwnageTool 2.0 release because they want to make sure they will be "market leader" and give copy cats a chance to build a better, easier tool than theirs.

It is interesting to see that the economics and obstacles inside the hacking community are very similar to "normal businesses".
More details on the iPhone Dev Team site.