Not an easy question...even before getting this lens I saw that it was getting pretty mixed reviews. Even so, when I had the chance to get one 2nd hand, with warranty and a good deal cheaper than in the shops, I bought it anyway.
This is one of those lenses with definite strengths and also pronounced flaws, so it does leave me feeling somewhat lukewarm at times, even though I'd admit that I like this lens a degree (pardon the pun) more than I dislike it.
Pronounced strengths:
-the focal length range...not only is it expansive enough to make it very walk-around on the APS-C bodies (for which is was made for), it manages this in a small package, and while keeping image quality at a sufficiently high level to remain acceptable. For this I believe there is no equal yet. The Sigma 17-70mm comes close, but I doubt if 70mm will be flattering enough for a portrait. But this is just being pedantic.
-IS...three stops worth of compensation for camera shake make this a great tool for shooting in most lighting conditions while traveling without a tripod. In the dark, bump up the ISO, watch the handholding technique and you will see decently-sharp pictures in your computer. Naturally IS also helps in bright conditions. For example, it's possible to shoot handheld even with a polarizer on the lens and still be able to stop down for greater DOF and better IQ. What about waterfalls? I've not tried this yet, but the lens can theoretically be handheld at slow enough shutter speeds to show off motion blur in water and other moving objects.
-USM...swift and very silent, and accurate. I've tried taking this to the streets with me and shoot from the hip. Managed some shots of even my friend who was standing next to me.
-light and compact...helps, when you don't want to be noticed. Plus it's great for traveling. I keep feeling that Canon made this lens for consumers and casual shooters rather than demanding photographers. The range, IS, weight and IQ all seem to point to this. All these things combine to create, as BearLeeAlive mentioned, a 'go-to' lens. I reckon this lens will work very nicely with a 100-400mmL. Take both on a holiday and you'll cover most eventualities, except perhaps sports and indoor action work...and macro.
-reasonable IQ...given the other features of the lens and the compromises to be made. The lens is much sharper at the longer end than the wide end, and I prefer it to be the other way around. That said, IQ at the wide end is passable and at the long end is really nice and sharp. No terrible drops in IQ anywhere in the range as far as I can see.
Pronounced flaws:
-terrible, terrible barrel distortion...it makes my cabinet and table look rounded at the center when I view my images, and it makes my LCD computer monitor look like a glass-fronted CRT from ages past. Yes, I've read that it's easy to fix, but I haven't tried. And it's intensely annoying to have such distortion in pictures to start off with. I will primarily work with the wide end of the lens when I want to do architecture, but as you can see, distortion of this sort is not going to be a plus point for photographing interiors.
-CA...quite pronounced on some occasions. When I photograph nature, there will definitely be some leaves/ branches against the sky, and CA reveals itself here. It makes the edges of the leaves all nice and purple and turns margins of branches brown-red. Again, I read this is easy to fix.
-build quality...not as good as I expected. A plastic shell is fine by me, but the zoom ring and focus ring could certainly be a little smoother and well-damped. Instead they feel pretty lifeless and sometimes scratchy in use. Well, at least the lens has a metal mount.
So in conclusion, any glaring flaws that this lens has are probably easily fixable, so they're annoyances at best. For people like myself it does have its limitations since I don't like to post-process every shot, and furthermore have specific interests (eg. architecture) that will reveal the distortion characteristics of this lens.
However, having such a focal length range in a single package is amazing indeed. It's good to know that I can grab this lens and be confident I can handle most things that a situation will throw at me. Although slow I've even shot basketball outdoors with this lens and it fared well. However because of the small aperture it's difficult to get a bokeh with this lens and some pictures can turn out with a cluttered background if you're not careful.
For those who like shooting from a plane or on a hot-air balloon, I reckon this is a good choice. It's not nice to change lenses in those situations, as far as I can guess, plus the IS will keep images nice and sharp despite the jar of the engine. To this end, this lens is probably as 'walkaround' as it gets. Sigma has released the 18-200mm OS, but we have yet to see how well this will fare.
Initially I wanted to keep this lens, but recently was lucky enough to get a 28-105mm almost for free. Hence I am thinking about selling this lens and getting a Sigma 15-30mm. If I do this, it will take me two lenses to cover a similar range, and without IS. However it will allow me to pocket back a few hundred dollars that I can use for something else.
All I can say is, with a lens like this, you're making compromises in exchange for flexibility. Whether those compromises will be a deal-breaker depends on the individual photographer. Personally, it made me like it enough to keep it, but there are other options I would like to explore.