Gizmodo Raid: Apple says the iPhone was stolen

We all know about the iPhone 4G, as it was leaked over the internet by Gizmodo. The Gizmodo editor bought the iPhone prototype for $5,000 from the person who found it.

Many legal issues were raised as the iPhone wasn't stolen, it was left in a bar by Gray Powell. Jason Chen (Gizmodo Editor) had his house raided by the Rapid Enforcement Allied Computer Team (REACT). They took from his house all his laptops hard drives, USB devices, etc. The search was ordered after Apple had reported that the iPhone prototype was stolen. The problem is that the iPhone wasn't technically stolen; it was left at the bar. 

Mr. Chen's lawyers are defending him and they say that he is covered under the California Shield Law. The California Shield Law states that journalists have the right to protect their unpublished material from examination. Also, he said that the police knew the identity of the person who took the iPhone and had talked to him.

Personally I think it was wrong for REACT to raid Mr. Chen's house. The iPhone wasnt "stolen" like Apple said it was. It was left at a bar, but was it right for him to pay $5,000?

Now that the iPhone 4G is leaked and everyone knows about it, now thanks to Gizmodo, what will Apple do at WWDC, which is being held on June 7th? Are they just going to release the iPhone that was leaked or are they going to redesign all their hard work?