I stood in line for 2 hours Sunday morning. I got to the store at 8 and was about 60 in line, it opened at 9 (by that time they had done the legwork on which phone you wanted, if you had everything you needed to get the new one, etc). I got to the front of the line around 10:15 and was out the door by 10:25. The process went very smooth for me. There was one family that took about an hour to activate and get out the door. They were there when I got to the door at 9:15 (they had let the first part of the line into the store so they could queue up in the air conditioning) and they just left when I was getting helped. I figure they had sold maybe 50 phones per hour - 8 people at about 1 phone every 10 minutes, plus or minus the random problems.
The girl helping me had asked how long I was in line, I told her 2 hours or so, but given that I waited in line 9 hours last year for the first iPhone, this was nothing.