Should I update my iPod Touch to iOS4?

I recently updated my iPod Touch to iOS4 and I have also found the UI a bit less responsive. Facebook app doesn't seem to auto update the news feed anymore. I have an aftermarket FM transmitter (Belkin brand) I use in my wifes car and sometimes the iPod pops up a warning saying this device is not supported and doesn't work, haven't had that before. Usually reconnecting it takes care of that.

I haven't noticed a drop in battery life.

Overall I think iOS4 is a downgrade. It's a little slower, uses power when it's turned off, and apps like the NYTimes and AP Mobile both quit at random. I find folders mildly helpful, but I don't like them for often used items.

I wouldn't upgrade, and if there's a way to downgrade i'd consider it.

I am starting to have problems now as well. I have not noticed a battery drain. But a few apps are hanging up, or crashing now and then.

The restore feature in iTunes restores the iPod back to its original settings. Is that back to the OS3 it was sold with or back to a base install of OS4?

My upgrade had a problem, the restore took it to OS4.

My 3G got super slow after OS4 , my friend has a 3GS and his was fine , i got the Phone 4 now so i'm using my old 3G as an ipod touch .