The folks at GeekNUZ have posted a quick story in which the author and a friend spotted an Apple employee using an iPhone out in public:

"So I was at a local restaurant with my friend Philip here in silicon valley when I noticed that the man behind me in line was holding an iPhone!!! I had to lean over and sneak a peek, of course, and saw that he was navigating a page with lots of text. I think it was a website. Then he clicked over to some sort of list - was it bookmarks or an options menu? I couldn't tell. Even from two feet away, however, the screen appeared crystal clear with the tiny font text. The phone itself looked like I remembered seeing it at MacWorld a few months ago-same size, shape, and it wasn't protected with any sort of case. (The screen itself cannot have any sort of covering on it, according to the rep I spoke to at MacWorld) He was quite unabashed about the fact that he had it. When he sat down at the table in front of me he had it out most of the time while he was dining and was taking pictures of the person he was with and was talking about the functions of the phone. I approached him and asked if he was an Apple Employee who works on the phone, to which he replied "yes." So I went on and gave him my schpeel spiel (thanks Jeremy) about why they should allow third party software on the stupid thing, to which he replied with a blank, and mostly disinterested, look. He said to me "yea, as far as I know they're not allowing that yet." Anyhow, he was nice enough and I hope he takes the comment to someone who cares. Check out the candid pics I took (with my SE K750). Even though it's got a 2mp camera the lighting wasn't optimal in the restaurant so they're a bit grainy, but still worth it! iPhone in the wild!"

Pictures can be seen here and here.

Thanks again to GeekNUZ and if you seen an iPhone in the wild, send in pictures or video (provided you're not disturbing someone else's privacy/being a nuisance) and let us know.