Early reports of 2.1 firmware are good

People who have updated to version 2.1 of the iPhone's firmware have reported better 3G reception, faster syncing and a more snappy experience overall. No one has reported major problems with the update.

I'm upgrading now so we'll see how it works for me. Better battery life and less lag while composing an SMS would be very welcome. 

Apple's list of bug fixes in 2.1

* Decrease in call set-up failures and dropped calls
* Significantly better battery life for most users
* Dramatically reduced time to backup to iTunes
* Improved email reliability, notably fetching email from POP and Exchange accounts
* Faster installation of 3rd party applications
* Fixed bugs causing hangs and crashes for users with lots of third party applications
* Improved performance in text messaging
* Faster loading and searching of contacts
* Improved accuracy of the 3G signal strength display
* Repeat alert up to two additional times for incoming text messages
* Option to wipe data after ten failed passcode attempts
* Genius playlist creation