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Is the original iPod Touch worth upgrading?

Some first-generation iPod Touch owners are reporting that Apple's OS 3.0 has made performance sluggish.

Photo of first-generation Apple iPod Touch
The first-generation Apple iPod Touch. CNET Networks

Owners of the original Apple iPod Touch are at a disadvantage when it comes to upgrading to iPhone OS 3.0. The OS upgrade comes with a $10 fee and adds improved features such as copy and paste, landscape keyboard, Spotlight searching, Shake-to-shuffle, Safari autofill, and improved Wi-Fi hot-spot log-in. Unfortunately, desirable new features such as Voice Memos and Bluetooth audio streaming won't work on the first-generation hardware.

To add insult to injury, some first-gen users (including CNET's own Antuan Goodwin) are reporting slower system performance after making the upgrade. Symptoms such as choppy gameplay, longer App launches, and sluggish menu scrolling seem to be the most apparent.

Any first-gen Touch owners out there having similar issues with OS 3.0?