I'd rather deal with using a prepaid phone overseas than to be a slave to AT&T.
Oh, I just take my GSM phone and put a prepaid SIM in it. The inability to do that with nearly all iPhones irks me to no end and you'd likely read in another of my posts.
Having two products would be a nightmare. Apple is as profitable as it is because it knows how to mind its costs (as well as sell a lot of product). Having two supply chains is a lot of work. Definitely 2x the work for someone that isn't involved with the OS. Hugo is on the hardware side right?
Putting CDMA hardware into all iPhones would have been expensive. Not to mention detrimental to the design which is already using all the space afforded by its footprint. Doesn't seem logical to me to toss in support for technologies that are only used in the US and that are just going to disappear.
Anyway, none of this really has anything to do with the issue that ATT had some poor security on some of the data on its web site.