I've not upgraded my 1.0.2 to 1.1.1, mainly because I really like the apps that are available - I use Sketches (the etch-a-sketch clone) to markup pictures, iFlashCard to brush up on my languages, and TextEdit most every day.

I like the thought of having a double-click to get to iTunes, but it's not enough of a benefit to outweigh losing the 3rd party stuff.

Oh, and I did elect to download the update, just not install it. iTunes on the Mac doesn't make you update the firmware in order to sync... YET...