If you've been reading all the negative iPhone 3g reviews don't believe them. I've been playing with my new iPhone 3g for only 24 hours but I can tell you there is nothing like it. Including the first generation iPhone. The look, the feel, the audio and the software options are much improved. Maybe the cell phone reception is a little off of par but all the other features more than make up for any shortcomings. I'll be adding to this report after I've had the phone for a while but don't pass go just go out and buy one NOW!
Video update (8/1/08):
Update 5/05/2009; I'm still using my iPhone and it just keeps getting better. The apps that keep coming out allow the phone to do amazing things while still running like a MAC - ROCK SOLID! Also, the AT&T Network is much improved with 3g coverage most everywhere I go. I'm iPhone all the way and I can't wait to get a new one in June!