The new iPhone OS 3.0 was released worldwide this morning and I have just installed it on my iPod Touch. It cost me a total of $13.99 to purchase. The download and installation took around 30 minutes, including iTunes making backups of my 16GB device before and after the installation.
Was the upgrade worth it? Absolutely.
The new OS takes the device to another level. It finally supports Cut/Copy/Paste, optimised for a finger-based interface. It now includes Spotlight to search the entire device from a single location. In fact there are over 100 new features which are well designed and implemented, in true Apple style, and vastly improve the experience of using the device. You can view a quick summary of the "Top 40" features over on the iSmashPhone article: How To Use The Best 40 Features of iPhone 3.0.
Do you want to know what the killer feature is however? The one that makes the $13.99 upgrade seem very reasonable indeed? Every iPod Touch (2nd Gen onwards) has a Broadcom BCM4325 chip inside, which in addition to supporting WiFi also supports Bluetooth 2.1 + EDR. However the Bluetooth in the iPod Touch was disabled – until iPhone 0S 3.0. The upgrade has unlocked and enabled Bluetooth on the device. The hardware unlocking combined with the new API's made available to programmers in OS 3.0 allows the iPod Touch to talk to other iPods/iPhones for peer-to-peer gaming, exchanging data, and connectivity with 3rd party peripherals such as headsets, computers, speakers, car accessories, A2DP laptops/watches and more.
iPhone OS 3.0 is a free upgrade for existing owners of iPhones.