If you actually owned both handsets (3G and 3GS), you can more readily see the significance of the update. The 3GS, even though it "looked" the same as the 3G, was a totally different beast. Much, much faster. It made it hard to even go back to using a 3G once you got accustomed to the 3GS.
You could say the same for the 4 and 3gs. It's almost unbearable to look at the 3gs' screen after the 4. A lot more zooming in to read web pages. The camera is far superior, more snappy, battery, etc.
Every model is better than the last, but I don't think Apple is ready to let go of the 4's phenomenal success, there will be a 4(letter).