It looks great!
I think for the 3GS users out there, this is a great upgrade. Those that bought the iPhone 4, can wait until next year, and get the 5. They can then deal with the problems of having a completely untested in real life phone, and will complain about the same problems we had with "AntennaGate", and those that bought the iPhone 4S will get the perfected version of the iPhone 5 (e.g. iPhone 5S).
If you want to get a new phone every year, great, but it is obvious that Apple wants to do 2 year cycles, with spec bumps a year into the cycle. They did it with the 3G => 3GS, the did it with the iPhone 4 => iPhone 4S.
This makes a great phone even better for those that want to upgrade. Those that don't, save your money for next year.
If Apple wanted us to get a brand new phone every year, they would negotiate with the cell phone providers to offer 1 year contracts. At that point it might be worth it. Then again, it may be the providers that are telling Apple to not do significant exterior updates every year.
Looking forward to my new iPhone 4S!