I want to be clear that my problem is not "unsubstantiated". iOS 4.2.1 breaks iPhone 3G WiFi. End. Of. Story.
And while updates are not "compulsory", they are nearly forced on the user by large dialog boxes that pop up every time you sync the phone with iTunes. I'm definitely made to feel like I'm supposed to update the phone by Apple.
That being said, I guess this is not the forum for software bugs, as stated by the Apple Shill, but just people having problems with a working iPhone not running iOS 4.2.1. However, I found the thread while trying to search for a solution to this issue, and many others have also. Maybe someone at Apple who can actually do something will happen to read this and find a fix and get it released.