Allow me to demonstrate just how sluggish EVERYTHING has been since the software update: when typing in a password (say, on macrumors for instance, to respond to a thread) the actual letters are appearing as you type a split second before being replaced by the familiar black security dot that usually appears immediately to mask it.
Combine this with all the other lag problems -- ranging from screen transitions between and within applications to generally slow Internet connectivity even in major cities like Atlanta -- and you can definately tell something is amuck either with the software itself or, as has been suggested, the ability of the network to handle all the traffic.
My guess (and hope) is that they'll be releasing a software tweak within the next couple of weeks to address the issues....oh and a new phone within the next 6 months or so!!!
So if you were a first gen owner and you've managed to resist the initial temptation so far and have been content with just the software update, no need to be suckered in now!!
A 32GB version with video recording (among other niceties) is just around the corner. This is in keeping with how Apple screws its early adopting customers! I see no reason why they'd do any different this time around.