My review of the iPhone 3GS is now live on the Seattle Times Web site, a day ahead of when it's scheduled to appear in print. I like the new iPhone quite a bit; Apple sent me a review unit, but I had also ordered one the day it was announced.
I skipped the iPhone 3G last year because the iPhone OS 2.0 software provided all the improvement I needed; I did buy one for my wife (see my TidBITS article "iPhone 3G: On the Line in Seattle"). But partially due to the fact that I write about Apple and technology for a living, and due to new features like the compass (which many people will tell you I need) and the improved speed overall, I decided it was time to move up.
Here's a link to some of the photos and videos I took to demonstrate the camera: iPhone 3GS Review Seattle Times. (I also discovered a bug: when uploading a photo or video to MobileMe, the first album it lists can't be deselected; so in my case, anything I upload goes into a password-protected album I set up for a photo client, which I then have to move to the album I want using the MobileMe Gallery interface on my computer.)