For all those 3GS holdouts like myself who don't want to jailbreak their phones, you'll be happy to know that personal hotspot does indeed work for our phones and the iPad via Bluetooth. I realized my average cellular data usage per month was no more than 300 to 400 MB on average, as i'm usually on wifi. Therefore, I cancelled my legacy unlimited iPhone data plan, got on a pro plan for tethering. Although the 3GS cannot create an "wifi hotspot" it can easily share data over Bluetooth and USB. I am writing this post on my wifi only ipad 2 connectd to my phone via Bluetooth hotspot. Speed wise the iPad is getting 1.2 MB/s download and 0.12 MB/s upload, which I believe is limited by the Bluetooth itself. That being said, my ATT speeds are so unreliable I'm lucky if I can get 1.5 on my phone on a good day. I did this as I'm traveling quite a bit in the next few weeks and in have no desire to be ripped off by hotel wifi that charges $15 to $20 PER DAY for usage. One question I have though for people that use personal hotspot, how do you deactivate the feature in the months your not using it?