I was just making clear that it's not a feature missing in the iPhone, its OS or its software. It's all there. It's just blocked/disabled on US phones courtesy of ATT.
Yes, I apologized for and acknowledged that. See above.
Even bluetooth tethering is annoying, and requires more work to connect to than a simple WiFi network.
You must emit some sort of anti-Bluetooth field.
Agreed :-) Back when tethering could be turned on with iPhone 3.0 betas on AT&T, all I needed to do is click on my Bluetooth icon in the menu bar, click the menu option for the phone, then click connect. When I was done, same procedure. Never had to take my phone out of my pocket or fiddle with settings on it once the phone had been paired with the computer (a one time setup).
I do have an aversion to bluetooth, although I seem to have my first good experience with the technology on my Nexus One. And you're right, Tom, your setup sounds very simple, so I won't argue that.
To defend the WiFi hotspot, there are devices that can't do bluetooth networking. I was able to use my Zune HD to download music from the Zune marketplace on the go.