I've never used FCP or FCE before, and my only experience with video editing is iMovie, but from what you say it appears that FCE has gotten as good as it gets, and there's really no reason to wait for a (possible) newer version than the current one (3.5). Have I understood you correctly?
As with every update, looking back there's always something that has been (usually drastically according to the advertising) improved. Something that makes using it a whole lot easier. For those of you who have used FCE (the current version), are there frustrating things with it that you wish would be improved?
By the way, have all updates for PCE in the past been ones that you pay for, or have there been free updates as well? I have no idea what a "multiformat timeline" is, or what it's for, but if it's something I really need I might as well wait a little longer.