As promised, Apple has released iPhone 2.1 update via iTunes 8.
General fixes:
- Decrease in call set-up failures and dropped calls.
- Better battery life for most users.
- Reduced time to backup to iTunes.
- Improved email reliability, fetching email from POP and Exchange accounts.
- Faster installation of 3rd party applications.
- Fixed bugs causing hangs and crashes.
- Improved performance in text messaging.
- Faster loading and searching of contacts.
- Improved accuracy of the 3G signal strength display.
- Repeat alert up to two additional times for incoming text messages.
- Option to wipe data after ten failed passcode attempts.
- Genius playlist creation [Illustrated by one reader] .
Security fixes:
- An application may be able to read another application's files.
- Multiple vulnerabilities in FreeType v2.3.5.
- mDNSResponder is susceptible to DNS cache poisoning and may return forged information.
- Predictable TCP initial sequence numbers generation may lead to TCP spoofing or session hijacking.
- An unauthorized user may bypass the Passcode Lock and launch iPhone applications.
- Visiting a maliciously crafted website may lead to an unexpected application termination or arbitrary code execution.
Other fixes:
- The texting memory leak problem seems to be fixed.
- Apps run a lot faster.
- No lag when srolling, faster launching of SMS app.
- New "3G" logo in the menu bar.
- Updating applications keeps their icons in place.
- App syncs still slower compared to media syncs.
I was able to update in minutes with no fuzz. Here's my updated About page:

What was lost:
The pineapple pwnage logo
Installer 4.0
Apps installed by Installer 4
Cydia and Apps? (not sure since I didn't have it in the first place)
Hacked App Store Apps
What got retained:
Apps from the App Store
Hacked Apps' Icons
Icon positions
Click here for the full procedure to update your phone.

