If you are comfortable with 1.1.1 thats fine. As far as applications are concerned, Almost all of them run on 1.1.2. The best feature about 1.1.2 Which I liked is opening email attachments like word, excel and pdf in horizontal view.
My interest in Iphone is more from technical perspective and not unlocking phones or performing updates for a fee. Thanks. However if you need any help regarding iPhone my fee will be a good cup of tea.