With all due respect, you are seeing it wrong...
There is an issue, created by Apple, and that does not change because a self-professed 'geek' says so. This is a phone that people use mainly to make calls and the other things that any '$0 with a contract' phone does these days. More so, end-users just plug it in, and there it is, iTunes telling you to update to the latest version (sometimes with security fixes, etc. that you need). Regular users are not the kind, nor should they be, that will look at it from a geek point of view: "This is a .0 release, I better skip this one". Unfortunately, the 2 years old 3G phone feels like an 8 years old PC running windows Vista. Sluggish, erratic, crappy, etc. That is frustrating when all you want to do is call somebody and you have to wait for the screen to be responsive so that you can 'slide to unlock'. Then you tap the Phone icon, and you have to wait again. Then tap the Contacts icon, and guess what, wait again. Then scroll, and wait, and tap the contact and wait, and tap phone number, and wait, to finally have a phone call being made. So, I am sorry but the complain is legitimate now, regardless of what you think.
Additionally, as a Developer using 4.1, I hope the issues are addressed soon because 4.1 beta 3 is still as frustrating and slow as seen in the video attached in the original post.
Now about your comments on Apple engineers, poor quality software cannot be excused just because most software companies do such crappy job, and you apparently go to crappy restaurants and don't like most of the people around you. As much as those engineers are people, like you and I, QA is done for a reason, especially for a company that will tell you "is all about the software" and that prides itself in the quality of their software. And all those comments on the Apple engineers are just silly and out of context here. If anything, most people who follows Apple or their products know that their engineers are usually over worked. (Ever heard of Mac OS being delayed because some engineers where shifted from that team to the iPhone OS team? That, no matter how much you and I like Apple and their products, is a very ridiculous situation for a multi-billion dollars company.
Lets see how the update fixes things before we judge. iOS 4 has been in the wild 2 months tomorrow. Only two months. During that time I have seen several beta versions of 4.1 come across the pipe.
An update is coming. But there is a reason why MANY MANY people always unquestionably avoid .zero releases. .zero releases tend to have bugs. I don't avoid them because I like to find the bugs, I document them, and I report them. Usually bugs I report end up being duplicate bugs since other people find them too. However, for the first time ever - with iOS 4.0 I was able to report a bug that mine was the first report. As a geek, I was pretty darn excited. And that bug is listed as fixed in 4.1 betas.
Now - if the performance issue is not at least addressed enough to make the older phones usable after the update? Then there is a legitimate complaint.
But as it stands, Apple released iOS 4, it had some bugs and they are working on iOS 4.1.
I swear some times people think that Apple engineers just sit around on piles of money drinking champagne and cackling madly while watching YouTube videos of people with software problems.
Apple engineers are working hard at fixing problems just like any other team. They have bosses and deadlines and performance reviews. Their kids have summer camps and swim meets just like regular people. Their cars get flats on the way to work and their trains and busses get full with people jabbering on cell phones about their parole officer - just like other commuters. They have copier jams, and annoying coworkers, and people bringing smelly thai food in for lunch...
I hope everyone who complains has always met every single deadline, deliverable, contract, specification, or job duty - with 100% success and perfection on the first try every time.
I can't even get every waiter/waitress/cooks to get dinner orders right. Sometimes life is a complex thing. Patience is a virtue. Understanding also goes a long way. Of course we want Apple to fix things, and make things right. But it has been a lousy 2 months - lets see what happens!