I totally recommend it, here is Gizmodo's review on the iPhone 3GS to get you enticed:

http://gizmodo.com/5293388/iphone-3gs-review

I recommend it for the app store (if you dont have an iPhone/iPod Touch yet). There is so much there to keep you busy and keep the boredom down!!!

Here are Gizmodo's Must Have Apps:

http://gizmodo.com/tag/iphone-apps-directory/

I recommend the majority of them with the addition of "PhoneFlicks" (netflix mobile), "Slacker" (internet radio), "Mint" (online budgeting), "myWireless" (pay your AT&T bill all over the phone), "Last Call" (app tracks your blood alcohol content), "Tap Tap Revenge 2" (Like guitar hero for the phone), "Sol Free" and "Sudoku" (free solitaire and sudoku), and "Kindle" (Amazon Kindle app),"Offender Locator Lite" (track sex offenders near you), "Lemonade Tycoon" (old school game from EA that's FREE), "Unblock Me Free" (great puzzle game with hundreds of levels for free), "Booyah Society" (for the achievement whore in all of use, get achievements for everyday tasks), "Scramble" (Like Boggle, but more fun), "World 9" (Jump around and the phone will make Mario Jump noises when you jump!!!)

These aren't all new apps but they will keep you from getting bored for sure!!!!
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The Iphone 3GS is a decent upgrade from the 3G but the leap isn't as big with the 2g from the 3G. Other then the Video recording, the main differences I've noticed with the 3GS would be the speed improvement (it's almost twice as fast) and the slowdown I used to get with the 3G from time to time is gone.

If you are upgrading from the 2g to the 3GS I would say definitely. But if you are upgrading from the 3G and not loaded with cash then that's a maybe. If you really love your iphone like I do then you will get your money's worth even if you have to pay the extra premium to upgrade :)
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