I am generally quite pleased with the update. I would have liked to have seen widgets and a notification menu. Widgets are useful for doing things quicker, say if you want to see the weather or post a Facebook update then you can easily do it from the homescreen without entering the full app.
Secondly, with a notification menu then different apps could pull up notifications at the top like in Android. One thing it doesn't do is interrupt you with a notification right in the centre of the screen so you can ignore it if you want, or you could pull it down from the top and go and see it. I also use push email a lot more than texts these days. On the iPhone there is only a sound notification, so it is quite easy to miss emails if you don't hear the alert. A notification menu would at least tell you if you have email waiting for you.
One welcome addition is VOIP which is now actually useful with multitasking. I doubt the networks will like it too much though! Although, with Skype allowed, why doesn't Apple allow Google Voice? Google Voice looks amazingly useful. I like that it gives you one number and then you can easily set it to forward it to whichever phone you are at or a new phone if you get a new phone. Not to mention having a visual voicemail type system but with voice to speech. Of course Google has to bring the service to the UK first of all. I am led to believe that Google won't bring Google Voice to the UK because it is too expensive. Calling a mobile in the US is the same cost as calling a landline, whereas in the UK it is currently more expensive calling mobiles. Although if I am not mistaken OFCOM recently ruled that the telcos need to cut their connection charges by 90% which could mean we see Google Voice sooner rather than later. The only downside is we might have to start paying to receive calls/texts as well making calls. Although if we pay less and we get stuff like Google Voice then I am all for it.
Folders seems really useful. I could just put 4 folders in the dock each in their own category of my most used apps. I welcome iAd, if it makes ads better than the current ads in some iPhone apps I am all for it as I realise app developers have to make their bread somehow.
Can't wait for new hardware though. My current iPhone 3G is still great but I have nearly had it 2 years now and all these phones like the Google Nexus One with their 5MP cameras and superfast processors are making me a bit jealous. Hopefully they can make the new phone as fast as the iPad with the same battery life and same screen with a 5MP camera. I'm not getting a 3GS for something just a little bit faster, I want something that will smash my 3G and make the Nexus One look like a little b****