When I see videos like these with a lot of lag I don't consider it to be running the OS well. It's bearable at best, which is always a matter of opinion.

www.youtube.com/watch?v=bZ0abA1fksE www.youtube.com/watch?v=ovUMS3f-QLw

Clickable links:

http://www.youtube.com/watch?v=bZ0abA1fksE

http://www.youtube.com/watch?v=ovUMS3f-QLw

I have the same phone and I do not experience anywhere close to that amount of lag.

Same here and the phone runs great.

even if it has lag. you have the option.

do you rather wait 2seg for an feature to finish executing or not have the feature at all? (as it would be if you had bought an iphone 3G instead of the G1 at the time)

He'd rather not have it, see copy/paste before iOS 3.