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60GB NA model. Had to DL via Ethernet due to timeouts with WiFi, but no problems post update.

Backed up the 2.36 firmware drive imprint to external HDD anyway. Not sure why nobody uses that function (either people are too lazy, like to gamble, or aren't aware of its existence), but it's there to prevent corrupted system updates caused by install interruptions.

Allows you to navigate through overlaid video directories while video is playing which is nice. Same with music. Also allows user to view photos while music is playing. Conversely allows user to play music while viewing photos/slideshows. Directories load up much quicker than 2.36.

XMB does pop up within PS3 games as per request, unfortunately, using most XMB features requires you to quit first.

In game custom music playback doesn't seem to work until implemented by developers either.

Infrastructure for trophies is now in place, but doesn't matter much until developers start implementing their use. Will still be a good excuse to go back and play some old games if/when patches are made.

In game messaging seems to be the only other significant functional difference, but that was one of the bigger demands from users.

May not have been the be all end all of updates (some expectations were plain unrealistic), but the PS3 has easily been the best system this generation in gradually evolving and consistently adding increased functionality to the platform.