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Well me and another friend both have the same issue with the USB cable that was included with iPhone 3g (see attached image).
Apple said they would not return it b/c it looks like user damage...but the fact that none of my other 3 or 4 USB iCables have this issue and 2 different iPhone 3g cables have the same exact issue I would disagree with apple on this.
Has anyone else experienced this issue on the iPhone 3g cable?
The cables are tearing because I bet you all are pulling the USB plug or the other end out of the computer or the iPhone by the cord. Don't pull it out by the cord but by the head.
Just bought a new USB lets see how long until it tears.
This was just with the cable included with the iPhone 3G, all my other cables old and new have worked fine for years.