Sadly, it’s an ugly tale. See here. A guy who was in line at the store where Woz got his iPhone refutes the Woz version of events:

Worst of all is his claim that ‘the folks already in line were honored to have me there and immediately granted me the first spot in the line.’ I love you Woz … but that is absolutely untrue. … I held off writing this post for two months, but I think it’s important to recognize that ‘being special’ doesn’t make you special, and if getting in with the Apple Store and helping out by making badges is enough for them to let you in front then that’s all well and good (Disneyland does the same thing, letting VIPs cut to the front of lines) but it’s not okay to then tell the press that we invited Woz-and-company to take our spots out of deference, because that’s just not how it went down, and I want to set the record straight.