Upgrade to latest OS or not...honest answers welcome

I have the iPhone 3G, running on software version 3.1.3 No problems with anything running, but have read about issues in the past with upgrading. Now I read that upgrading isn't so bad. I'm wanting to get honest feedback.
Is it worth it to grade? What are the positives and what are the negatives.
I use my calendar a lot and I've heard this may be the main area where the 3G with the newest software update has issues. Please advice if you have experience with this. I sync with Outlook 2007 and have no issues.
Thanks in advance for your replies!

4.2.1 works just fine for me on my 3G. Marginally slower that 3.1.3, but not enough to bother me, especially given the newest features.
As you're aware, not all of the new features work on the 3G. No multitasking, no home screen wallpapers, no new text tones, etc. Personally, it doesn't bother me. Didn't have them before, so don't miss them.
The biggest thing for me is unified inbox and support for multiple exchange accounts. Folders are nice too, but I don't keep my phone loaded down with extraneous apps I rarely use.

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