Can the iPhone be used like an iPod Touch without a SIM card?

Ok so here's the deal. I currently own a 16GB 2G iPod Touch. The iPhone 4 just came out, and most Apple fanboys are upgrading their older iPhone 3G and 3GS. I've been very happy with my iPod Touch for the year I've used it, but there are some features on the iPhone that I'd like to be able to use,... show more Ok so here's the deal. I currently own a 16GB 2G iPod Touch. The iPhone 4 just came out, and most Apple fanboys are upgrading their older iPhone 3G and 3GS. I've been very happy with my iPod Touch for the year I've used it, but there are some features on the iPhone that I'd like to be able to use, namely the Camera, GPS, loud speaker, and built-in microphone. I've been thinking about trading my iPod Touch for an iPhone 3G or maybe 3GS.

So, my question is, if I do trade someone, will I be able to use those features without having AT&T service or any SIM card inserted in the iPhone? I'm aware that the iPhone has to be activated via iTunes once it's been restored. Is there some way to get around this so I can have a functioning iPhone without the 'Phone' aspect? I have a Sprint phone so there's no way I can use the iPhone as my phone. I just want to have the iPhone and use everything besides the phone features without problems. Is this possible? Thanks.
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