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iPhone firmware update v3.1.3, and thoughts on contract length

Today, Apple released a minor update to the iPhone firmware - taking us to 3.1.3. Took about 20 minutes to do the update (did a full backup beforehand, which also took about 20 minutes!). So far, not much seems different, and according to the release notes it's mainly bug fixes for the 3GS, so for people like me who are stuck in the slow lane, not much to get excited about. The only thing I've noticed is that it seems to have improved the keyboard accuracy when compared with the last update, which gave a significant deterioration over normal function. My text messages were particularly garbled whilst I was using the previous version.

By all accounts, the iPad is running 3.2, and it's likely that this will filter down to the rest of us around the launch date of that model, which is scheduled for March 2010. Then, later in the summer, it's expected that v4.0 will be released along with new iPhone hardware. If true, this will be good news for me as I've been holding out since my 18-month contract ended in December 2009, resisting the temptation of upgrading my aging 3G to a 3GS that will itself be pseudo-obsolete in 6 months time. As we now know that the iPhone is generally updated once a year in July, it makes less sense to get an 18-month contract that eventually forces a choice between immediate winter upgrading to an 'old' model or a 6 month out-of-contract wait 'til the new one comes along. Given that you end up paying for 24 months of service charge either way, it seems to make more sense to pick the 24 month contract and have the cheaper initial purchase price. I have an inborn hatred of long contracts (before the iPhone, I would always choose 12-months), so it will be excruciatingly painful for me to sign off on 2 whole years, but what choice do you have?! Unless Orange or Vodafone decide to offer a 12-month deal. That would make things interesting...