According to Engadget the 8 and 16GB iPhone is gonzo in Britain!!
And this isn’t just another rumor— unless you call this official O2 page stating "iPhone no longer available" a rumor.

Let’s see-
First AT&T wireless employee in the USA are asked to cancel vacation plans starting the middle of next month.
Then we get reports of major orders for the new iPhone being made.
We know WWDC is getting close.
And now Britain cuts off supplies of the current model completely.
It is looking more and more like we won’t have to wait all that much longer!
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by crispytown, on May 16 2008 @ 2:23 pm
I went to http://shop.o2.co.uk/promo/iphonetariffs and I noticed they got the 16GB iPhone but no 8GB iPhones. They are not soldout…. that was just a myth.