Much worse, AAPL is going to take a big plunge - no matter how awesome and flashy the 4S features are. After the HUGE pre-event hype and blabla, everyone is only going to take "What, NO iPhone 5????" away from this, sadly.
Unfortunately, I have to agree, I am a 3GS owner and was waiting for the 5. The thing that I keep thinking is with this being the first big announcement since Steve left the company they really needed to show the world that they where going to keep hitting home runs. While the 4S is an nice upgrade, it is in no way the home-run I would have expected to show that they are no worse for wear without Steve. I was very surprised when I learned that it would not be a 4G phone, that would have at least been an easy win for getting people to make the upgrade decision. My wife picked up an Atrix almost a year ago and it was 4G. I know the coverage is still growing and there are areas that do not have it, but it is not like 4G is not standard equipment on the higher end Android phones. To me that was the biggest miss.