How can I opt out of Apple diagnostics / Carrier IQ on the iPhone?

First off, Apple has issued a statement regarding the controversial Carrier IQ software. iOS 5 devices do not run the Carrier IQ software package (IQRD) and Apple will be completely removing all references to the software in a future update. Even without Carrier IQ, the iPhone can still send diagnostic and usage data to Apple daily to help Apple improve its products.