I just updated to iOS5.0.1
I ALWAYS wait for the first update after a major release update, no matter what the platform - I didn't update to iOS 5, needless to say.
Everything works fine. I lost no apps, my videos and music play just fine.
I did notice that things got sluggish though. And I noticed that I was getting "low memory" diagnostics. I keep my "background" apps low now and have turned off notifications for all but the essential (messages, calendar, reminders). I turned off iCloud for everything but "find my iPhone".
Things got better and I stopped getting "low memory" diagnostics.
It is slower than it was with iOS4 or iOS3, but the new features are nice, if not as nice as my wife's 4s.
I've heard said that the Genius Bar folks can do a "vacuuming" of the system to speed it up too, but I don't know about that, it sounds kind of scary...
DLC