A couple of quick comments. One, I just updated my iPod touch (gen 1) no problems. The shake to shuffle on music is kind of cool, the unified search is nice (my kids will like). Haven't played with copy/paste yet but that was a big deal. As another noted, the Google Maps update is sweet, and I liked the workflow ease of looking in my immediate area, searching for a restaurant by name, seeing it on the map, clicking, seeing street view and then being able to add to address book.
All of that said, I want to put a bow around what others have noted. This release is somewhat akin to a "block the kick" by Apple to keep developers from evening contemplating developing for Android, Pre or Blackberry so most of the feature adds are to drive developers to do even cooler stuff.
That may seem like a "SO WHAT" if you just plunked down $9.95 for the touch upgrade, as I did, but when then next 50K apps roll out, and a quarter of them take advantage of things like hardware accessory support within apps; multi-player gaming; levels/virtual goods, the new mapping and media APIs, you will be a happy camper.
If you care about such things, here is a post that I wrote on the topic:ANALYSIS - iPhone 3.0: Block the Kick Strategyhttp://bit.ly/ANdMz
Final note on the bemoaning re server delays, etc. It's nature of the beast, when 10M people (a guess, figuring 25% out of 40M devices) simultaneously try to access and download a big fat binary, expect delays. If that freaks you out, wait until tomorrow. It's not like they will run out of software. :-)