We have two iPhone 3Gs in the house that became slow after installing iOS 4 on them. We waited patiently for new sw updates, and now that 4.0.2 has been installed on them, they are still slow. Specifically, whenever I touch and menu or app, there is at least a one second delay before anything happens. Often it is a few seconds. Well, we have new iPhone 4s, so I gave one of the 3Gs away to a friend. Still, it bugs me that the new software (released at the same time the iPhone4 came out) in my mind degraded the 3G. Did apple do this on purpose? I don't see why new software should degrade the older 3G. If on the next iPhone release a similar thing happens to my iPhone4 and it too becomes degraded for some annoying reason, I am going to ditch all smartphones and go back to a basic phone. I loved my 3G and I love my Iphone4 even more. At least for now.