Did you upgrade iOS to version 5? I did, and it's never been the same since. I can now barely use the web browser without it crashing. Some domains are totally unusable; appears to be related to javascript use. Low-impact sites, such as HN, are OK. Other apps (such as the app store and many games) are very prone to crashing, too. There's very little I can use it for now without getting frustrated and giving up.
I have the same experience. I wish I could get a better web browser for it. my ipad 1 is just a video player/ book reader at this point (which isn't bad, just not grat)
I just checked, and I'm running 5.1.1. No crashes, no problems worth mentioning. Sure it's not the fastest thing on the block, but most sites and apps I use run perfectly fine. Admittedly I don't really play any CPU or graphics intensive games.