Yes. My 2G was always slow since I bought it years ago but I just dealt with it. With the Phone + iPod running, that left me with about 15MB to swim in.
biteSMS was slow on animations, when I receive a text it takes a few seconds, lags, and eventually pops up.
Calling someone from the contact list caused it to freeze, and everytime I change songs the first 2 seconds of it skips like a deformed shattered record.
The main problem is just the 128MB RAM, you can get SBSettings to keep track and periodically free up memory. I also downloaded VMphone (or...something like that) which was suppose to free up even more. With that one, hitting FREE MEMORY on SBS would cause the phone to freeze for about 15 seconds, but freed up to 50-70MB afterwards. Some problems still persists even with that.