My favorite feature is the headphone jack. I game at night, when everyone is sleeping, so I always use them. For the same reason, I have no use for the speaker, but I se how it can be useful and fun.
I haven't really played any games that use touchpad for anything other than a large "select" button, and I hope it will be utilized better in later games. Wel, at least it doesn't get in the way, so I don't even notice it.
The worst feature is the light. It doesn't really bother me in a sense that it gets in the way, but in my opinion it's completely pointless, and only causes the controller's battery life to be significantly shorter. I really hope they will add a feature allowing us to turn it off. Until then, it's covered by a piece of black electric tape.
I don't have a problem many of my friends are having - their analog sticks got worn pretty badly, the rubber started chafing or tearing and coming off. And it's definitely not due to misuse, a lot of people were very careful after hearing of such problems from friends, and it still got damaged. I started using ORB analog covers (or as we call them - condoms :) from the beginning, to preserve my analogs, and I must admit they are very comfortable and easy to get used to.