Yep, it's great but the 3G promises to be even better.
Some small shortcomings e.g. has limited range of ring tones and you cannot use downloaded music as a ring tone.
1st iPhone would not open downloaded attachments but I think the 3G will.
It is slow to download web pages via O2 (no problem when used with wifi) but new phone should fix that.
In summary it's a great phone and easy to use.
MP3 player, Blackberry,mobile, camera, web browser, and all round good egg!