Well I am lucky I will say I have not yet dropped my iPhone 3G and I am generally pretty protective of it.
I did drop my original iPhone a little over a month after I paid the original price of $599 for the 8GB back in the summer of 2007. I was on my way back from work and got stopped at a light that generally takes forever. So I pulled out my iPhone (since I had just gotten it) and was so excited now I could check stuff out while waiting at traffic lights. Well the light changed before I was ready and I just started going and set the iPhone in my lap. I went to turn down my street a mile later and the iPhone slid off my lap and down under the seat (or so I thought). I didn't see it so I figured it just went under the seat and I would get it when I got out. I pull in the drive way and open the door...and I hear the sound, I knew exactly what it was; my iPhone hitting the asphalt. It was some how wedged up against door and seat and when I opened the door it fell out. Looking down I see my iPhone laying on the ground, screen facing down and at that time my iPhone was going commando. Picking it up I see one of the corners had some minor bumps and nicks and the silent switch had a scrape and chunk taken out of it. Looking a the screen I saw one very small scratch.
For like the next few hours I thought I was going to be sick, having just dropped my $600 phone and just replaying it over and over in my head.
In any case it all worked out, I was able to sell that one still dinged up a bit for $394 on eBay to pay for my new iPhone 3G in July 2008. Go figure, I guess people really wanted to jailbreak those original iPhones.