I have now had 4.0.1 for almost two weeks, and I still consider my phone usable. Mostly. This is my tale, in case it helps anyhow.
When I got my phone 18 months ago it worked fine.
A few months ago, with iOS 3, I noticed degraded battery life. I had a local repair shop change the battery without much improvement.
With 4.0.0 my phone became unusable. Slow and still bad battery life like for so many other people.
I restored the phone to factory settings and set up as a New phone. Added a limited number of applications. Still slow. Unknown battery life, as I hardly could use the phone.
With 4.0.1, it was like a cork released from a Champagne bottle, and the speed improved dramatically. The battery life seems slightly improved, but I could not swear on it.
The speed is still, two weeks later, very acceptable. The battery life is almost acceptable.
Spotlight is on. Folders are on. 3G is on. Push notifications are off.
What I stopped doing, due to the limited battery life, is to watch movies and use the New York Times application. I read less on the Kindle App and Stanza than I did before. I have not even bothered trying to install Bento.
Mail, Safari, a couple of frequently used dictionaries, work fine. Japanese keyboard input is slower than before, but it is usable.
Your phones are probably different from mine, but hopefully some of the information above can be of some help.