This has happened to me as well. Trying to update either an iPhone 4S or an iPad2, I'm getting the dreaded "waiting for update server" message. 80billion in cash and you can't build data centers to match what Amazon and Facebook seem to have no problem doing?
Here's a new problem. The update to iTunes 10.6 downloaded no problem. But guess what? The latest versions of Pages and iMovie will only run on iOS 5.1 sooo they won't update on your devices. And don't get me started on how Siri was ruined from its original implementation as an independent app into the slow piece of non-understanding junk it has become today.
The update to iOS 5 was a nightmare that failed over and over until I finally had to search through online geek forums - something that I am not supposed to have to resort to with Apple products - in order to find out how to trick my devices into overcoming what essentially amounted to poor quality control before release on that install.
Now I'm going through the same experience. Again. I am reminded of the 90s before Jobs returned. It's clear now that his presence was needed as the final quality controller, and no one exists who can fill that role as of yet. Big doors of opportunity are opening up to people who can get the customer component right, again.