> I believe in doing the right thing as much as the next person but where do we draw the line with expecting too much ethical behavior from people?
I personally believe that law is applicable in this case. If you find someone's phone in the bar, returning it to the bartender is a natural and simple choice, at least in my world.
Selling the phone to the highest bidder was clearly wrong. Even if taking the phone was impulsive decision, holding an "auction" was a well calculated move.
Gizmodo did not buy the phone. They paid for the chance to look it over before turning it over to Apple, which they did once Apple told them it was Apple property.