The iPhone isn't 3G. 3 don't own a 2G network and so piggyback on Orange's 2G network. Orange charge them a lot of money for this privilege and so 3 take a very dim view of anyone trying to use a 2G phone on their network. You'll likely be kicked off their network for using the iPhone.
I strongly doubt that - a customer is a customer. Three do not make a loss when you use 2G; sure they have more overheads for paying for the 2G network but it is still profitable for them. So why would they boot you off?
I'm also pretty sure Three piggy-back O2, not Orange.
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