I have a 3G and also noticed a real slow down. I use an app called 'Scan Lite' which shows and allows you to reclaim memory. I noticed some interesting things going on......
1. There generally seems to be less availale memory under iOS4 than with 3.
2. every time I open an app for the first time, my available memory drops and inactive and active memory rises. If I close the app and open it again, memory usage stays about the same.
3. If I open another app, memory drops further and inactive and active memory rises further. Same again, if I open the app for a 2nd, or subsequent time, memory stays about the same.
3. Memory continues like this until you run out of memory.
THOUGHTS:
1. It seems to be a memory management problem.
2. When an app is closed, is iOS4 trying to minimise into multi-task mode, failing (because it's a 3G), and not freeing up memory?
3. iOS4 DOES generally slow down the 3G anyway - it has more functionality and therefore takes up more system memory to run. If you delete apps that you don't use very often, the 3G does speed up....slightly.
4. Can Apple disable functionality on the 3G, like multi-tasking, so that it does not even attempt to use system resources - as oposed to what I think is happening, which is; running the process then testing if it can be used. That way, the 3G is not running (or even loading into memory) functions that cannot be used on the phone.
iOS4 has killed the 3G. It's not worth upgrading on a 3G.
Can't wait to get my iPhone4 🙂