I got an iPhone 3G last week - it's awesome. I find it hard to believe I waited so long. Having access to my work email and calendar are great (we use Outlook, which took less than 5 minutes for me to set up). Also having access to the web is great - "What movies has Jennifer Grey been in since Ferris Bueller and Dirty Dancing?" "Well, let me check on that." Phone quality is on par with other phones I've had.
Battery life is short, but longer than other 3G phones. I mostly turn the 3G off to extend the battery life - I just use the slower but less-battery intensive EDGE network. 3G is only really necessary if you want to download big files or complex web pages, and you can always turn it back on. At home, I just let it connect to my wireless network, which is as fast as 3G. I get more than a full day's use out of a charge that way. I would get the 16GB if you plan to have any music or movies - I'm still deciding what to leave off even at 16GB.
A needed accessory is the Anti-glare screen cover. It's a thin sheet of silicone that basically protects the glass from getting scratched, and, more importantly, keeps fingerprints and, uh, grease off. It's not invisible, but on balance it's great. At $14.95 for two, it's kind of pricey for what it is, but it fits perfectly and it does what it says. Takes 20 minutes to get it on just right, but then it stays on till you take it off.
You'll also want to get an extra connector ($19.95) if your computer and where you charge the phone are in different rooms.
So, TL and everybody else, I would recommend it heartily!