Depends what you will use your device for and what your budget is. Look at the features of the 3 and the features of the 5 when they come out and decide which is better for you.
ished products was really good. I bought a refurbished iPhone last year, and it was in crystalline condition.
Apple restores returned products to make them look as new as possible. Their return policy is 14 days, so the product you are receiving has not been used that long.