As an iPod Touch G1 user
It all seemed to go pretty seamlessly early this morning (thus avoiding yesterday's server hammering). Though oddly my iPod seemed to think it was French. Fortunately, I can remember enough schoolboy French to find the language options in Settings. Feck knows what I would have done if it had defaulted to Turkish, or something.
Spotlight is good. Cut'n'paste I worked out in about 10 secs (though I wasn't in a pub). The iPod seems snappier, but that may just be down to the effective restore (i.e., if I'd restored my 2.1 install, I'd have noticed the same speed increase). Fortunately, I'd spotted the autofill settings before launching Safari (Settings is always the first place I start after an update).
A couple of nice new features in the iPod app -- Podcasts now have their own shortcut options. No more Genius button (no use for Podcasts), now there's an instant 30 sec rewind, and a button to change the voice speed (1x, 2x, 0.5x). Quite handy. Another nice feature is the scrubbing speed can be changed by moving your thumb up and down the screen after selecting the scrubbing bar. Handy on those very short or very long tracks.
One slightly worrying thing is that my battery seems to being eaten at a frightening rate. On a 2hr Tube/train ride to my client, I seem to have consumed about 50%... I'm hoping a reset will sort it out (it has previously).
Finally, it's really small, but I like the fact that the iPod now jumps to the playing song in a playlist when I click the back button. It was always a pain to have to scroll through the list to see what song was coming up!
All in all, nothing major, but assuming I can get the battery issue sorted, the update was worth it just for the Safari autofill (thanks to unmemorable hotspot usernames and passwords!).