Original 2G iPhone here, with 3.0
Noticed feedback in Rock that mentioned newer update (early hours of this morning) on Cydia, and with no mention of an update at all in Icy, I reluctantly used Cydia.
No disrespect intended Jay, but your Reboot routine has always sucked for me, since updating to 3.0.
Anyway, as I always do now, as soon as Cydia needs a Respring or Reboot, SBSettings gets used.
Glad to say, not seeing any negatives (thus far) with 3087, and 3051 was fine itself, which I'd held off updating to, for a fair while - too many instances of having to Restore the iPhone, that once it was working fine, I left it well alone!
So, to those who've had the infinite loop from using Cydia's Reboot option, I say switch off and back on again, the old fashioned way, and then install SBSettings (if you haven't already) and use that from now on - you'll save yourself a world of grief, I promise you.
Those sitting on the fence about this update - I've been fine, and that's with running:
libhide
prefloader
5dock
dimdelay
clockhide (for iHTC weatherclock lockscreen)
winterboard
Hope that is of some help.