I had the same problem. Was due to upgrade 21 June and rang O2 to try and get some sort of discount in their increased Samsung Galaxy 2 handset prices and monthly tariffs. Spoke to two people including a Manager and they just were not interested. I have been with them for 15 years. As it happened, I looked on Phones 4 U website and they were still doing the old O2 offer of £27.00 per month for 300 mins, 3000 texts and 500mb of data WITH A FREE HANDSET - which is something O2 were never doing at that tariff anyway. So I am (somewhat begrudgingly) still an O2 customer for the next 2 years, but I have a lovely brand new Samsung Galaxy S2 (which is fab by the way) and the tariff I originally wanted! This was only 2 days ago so I suggest that you all go to Phones 4 U to get your Galaxy 2 handset, as they seem to have far more O2 tariffs available than O2 themselves - madness - but there you are!
A now happy customer, but no thanks to O2!