In store activation of iPhone 3G caused much inconvenience to consumers, but guess that was the price to pay for getting the iPhone for $199. But it seems Apple and AT&T have managed to get the home activation back just in time for the holiday season. So you can buy the iPhone online and activate it at your home/office.
For users looking to upgrade to the iPhone might still need to visit the store, only new connections and accounts can enjoy the home activation (as it seems).