I’m not sure I want to update yet, one of my core complaints does not seem to be addressed (where the keypad does not hide and unhide correctly during a call). I’ll give it a few days and see what is said.  For those of us with jailbroken phones, we would have to lose our jailbroken apps and … not sure I’m ready to do that yet. 🙂

Here are the core updates as reported by informationweek..

The update is expected to improve the accuracy of the 3G signal strength display, as well as decrease the number of dropped calls. These two issues were a major point of frustration for some users and even led to a lawsuit, although Apple CEO Steve Jobs retorted that the issues only affected “a few percent” of iPhone users.Some users found that programs downloaded from the App Store would cause the handset to crash. That issue has been addressed, as Apple said the firmware will make installing applications quicker and more reliable.

Users with the updated firmware should have a reduced time backing up the handset before syncing with iTunes. Additionally, contacts and searches should load quicker, and the virtual QWERTY keyboard is supposed to be much more responsive.

E-mail reliability and speed should be greatly enhanced as well, particularly with POP and Exchange accounts. Security has been beefed up as well, as there’s now an option to wipe data from the handset after 10 consecutive failed password attempts.

Here is the full article from informationweek with more feedback.

Now, if you do not have jailbreak, I would give this update a try.  So far from what I’ve read, this update seems to make a differnce.