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I'm happy I upgraded. Folders and unified inbox is nice, no wallpaper is a bit of a bummer but no big deal really. Some Apps are a little faster, some slower, but overall everyday operation is the same. Be sure to restore from new and not just do the upgrade though, it takes forever but is worth it I think. I'll be happy with my 3G and am sure it will last me until next June when the iPhone 5 comes around.
 
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I like it, overall.

The Bad:

The upgrade was sloooooooooow. Had to re-enable sync with yahoo to get my contacts back. OS 3X was slow on mine already, 4.0 is slightly better. No multitasking or background wallpaper.

The Goods:

Folders are cool, Unified Inbox is sweeet. Notes syncs via the web with gmail, ymail, etc. I haven't used it yet.

GEOTAG photos! (it's retroactive too, very cool) 5X digital zoom is interesting, I suppose. Podcast links lead out of iPod, and playlist creation & editing finally.

Calendars also support birthdays (via your contacts).

Overall, not too shabby. Can't wait for iPhone 4, but this will give me something to do for a bit.
 
I upgraded my phone and it is okay. Not bad. I have to update because most app im using will upgrade to 4.0 and it will not work if you don't upgrade.

I was hoping that the multitasking is there. Anyway im waiting for the iphone 4 tomorrow :)
 
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