This is a good update with some nice features. I can't really comment on the people who say "the iPhone should include the following x features": I knew what I was buying when I bought the iPhone, it performs as promised, and now it performs better than promised. The pseudo GPS is nice (though of limited usefulness, unless you're hopelessly lost in a town with good mobile phone coverage but no street signs), whereas the add-web-apps to the home is a very nice feature.

There's just one issue I would like others to be aware of. On O2 (UK provider), when I completed the upload, all my phone and Edge connectivity was gone. The solution was to reset the network settings — which unfortunately loses all the WiFi settings, but that's ok — and, within a few scary moments (emergency calls only, info that 'iPhone was activated'), everything was working again, with (I think) actually a stronger signal.

Hopefully this saves at least one other person from scared calls to O2.