AT&T Contract ending soon

I was one of the original iPhone buyers... Well, the 2 year contract is coming up. If I choose not to continue service, will I still be able to use my iPhone (apps, ipod, wifi, etc...)

I have a first generation iPhone that I've used and I've allowed friends and family use as an iPod Touch. At first I removed the no longer activated SIM card from the iPhone and using it as an iPod Touch worked fine until the next firmware update was released. I tried to install the firmware update which didn't complete and bricked the iPhone, which I chalked up to the iPhone no longer being activated.
A few months later, I re-inserted the no longer activated SIM card - the one that was used with the iPhone when it was activated, and I was able to install the firmware update or compete the process, and I've installed every firmware update since that time on my first generation iPhone without the iPhone being activated and I've restored the iPhone with iTunes once.
Based on my first hand experience, my answer is correct.

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