Mine updated fine too. I have the 4S. So far, the benefits that I can see are-
1- The maps are now in 3D which is good.
2 - The alarm can now be set to a song from your music.
3- My photos are now divided up according to where they were taken.
4- Passbook has appeared as an App on my front screen. Haven't used it yet, but this is the app for boarding passes, tickets, etc.
5 - Directions are now VERY easy to read in maps, and scroll across the top of the map.
I'm sure there's lots more that I havent found yet! But all positive so far.
I cannot justify buying the iphone 5 and my own phone is less than 1 year old.
I can now print from my iphone as I have bought a new Canon printer for €54 in Argos that has AirPrint. Great bonus as I bought it coz it was wifi, only found out I can use it for the iphone when I got it home.