3.5 hours usage isn't good. Unless you were using the camera the whole time or heavy gaming, sounds like something is wrong.
The worst I ever get is 7, as high as 10.5 if I stream music for an hour or 2. On average I get 8 hours of pretty heavy use, in fact it's nearly impossible, or at least very rare for me to get from 100% to 0 in one day. I actually did yesterday, but I was up until 3 am, my stats were 10.5 usage, 17 standby, about 1.5 hours was BT streaming music. Normally I end a day with anywhere from 15-35% left, and 4-6 hours use. The 5 IMO has the best battery life of any iPhone, including the 4. Plus, pretty amazing they accomplished this while making the phone so fast and powerful.
That's not to say everybody is getting great battery life, clearly some aren't. Hey, my wifi isn't quite 100%, but I'm afraid to swap for fear I get a 5 hour battery life phone.
Always a trade off it seems. I'd rather deal with minor wifi issues and hope for an update than take a chance on losing the great battery life.
I think the OP has a bad battery or an app/process that's misbehaving. 3.5 isn't acceptable from this phone.