Some people wonder why I love my iPhone. I'll give you one simple reason: In all the years I've owned mobile phones, not one ever got better as it aged. The iPhone has gotten better three times now and promises to do so in the future. Today's bump added pseudo-GPS capability (which seems to work surprisingly well), a user-manageable home page, and multiple SMS recipients.
As an aside, my update wasn't seamless. After it tried the first time, it told me I had to do a restore. That worked fine, restoring the software to the latest version and then syncing my contacts, music, and so on from iTunes. Be sure you sync before you upgrade. If you have, then a restore is no big deal--just takes a little longer.