Myself am staying at 1.1.2 for these reasons.
-You are not able to downgrade so far. When doing so your phone says incorrect sim as the base hand seems to think it is different and everything gets screwed up.
Quote:
1.1.3 firmware at this point, but in the event that you do, proceed with caution. Nate True, the guy that brought us a video walkthrough of the supposedly leaked goods, is reporting that he can't seem to downgrade to 1.1.1 or 1.1.2 after performing the install. Locked phones show an "Incorrect SIM" error -- a problem unlockers of yore are all too familiar with -- while previously unlocked phones can't be upgraded to 1.1.3 at all. Let's be honest, though: if you somehow managed to score a copy of 1.1.3, is that really going to stop you from going for it?
[Thanks, cingular#1]
Update: We're hearing that the phenomenon observed by Mr. True has existed since the very first firmware release; it's a state the phone enters whenever it finds a baseband version different...
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-Nothing really new actually that we didnt have with jailbroken. We had gps with Navizon, we had SMS forwarding+ more, we didn't have home page books marks (oo darnnn

).
-No Jailbreak yet.
BIG WARNING: There is an application called 1.1.3 Prep or something along those lines it WHICH IS A TROJAN. It will not destroy your phones but mess up a few apps such as OpenSSH and more. Do not download this at all costs.
My speculation: I think that there will be a way to downgrade soon but first we will have to find a way to change the basehand on 1.1.3 and to do that we will need jailbreaking. Also since this will be much much harder to jailbreak it will take many months to do so. We will have to jailbreak it and if thats not hard enough we will have to find a way to change the basehand and after that we will have to make sure it even works with the new iTunes 7.6. Apple threw alot at us and we will have to work fast or stand out ground.
I will update later when I find out more about it. Sorry for a new thread I just thought I would put that out there so people can see that you cannot downgrade as yet.