Along with the 4.2 update, Apple appears to be unleashing Find my iPhone for free without a tie to a MobileMe account or rather to a free limited version.  As expected:

Find My iPhone, iPad, or iPod touch — the MobileMe feature that helps you locate your missing device and protect its data — is now free on any iPhone 4, iPad, or fourth-generation iPod touch running iOS 4.2.3 Once you set it up, you can find your lost device on a map, display a message on its screen, remotely set a passcode lock, and initiate a remote wipe to delete your data. And if you eventually find your iPhone, iPad, or iPod touch, you can restore everything from your last backup.

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