Today, despite warnings from a few users not to install the iPhone firmware update 2.2.1, I went ahead and installed it. I also updated my iPhone Touch from 2.2 to 2.2.1.
I was little hesitant to update it since earlier this year I switched to a MacBook Pro after nearly decades of exclusive PC computer and laptop use. See my blog on some of my experiences in running Windows on a MacBook Pro.
In any regard, so far both my iPhone 3G and iTouch are running on 2.2.1 without any problems. I understand there are only minor fixes (Safari stability; fixes an image image in which pictures are saved from mail and don't display in camera roll and for iTouch users a Apple Lossless ALAC audio issue) but some 3G users report improved performance.