KDE 4.1 was released today, and is already in Arch Linux’s repos, so I decided to update and give it a try.
First impressions - pretty slick indeed, especially after turning on proper compositing support for various funky effects including see-thru windows, “wobbly windows” etc - lots of which is fairly pointless but very nice at the same time 
So far it seems very polished, it looks like the KDE team have put in a whole lot of work here!
Screenshots/videos may follow, if I get a chance (although I’m sure there’s enough out there already).
Even with the extra eye-candy enabled, the system feels at least as responsive as it did under KDE 3.5, and I think even more responsive actually.
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I looked at KDE4 recently, but it was still lacking a few features then. I’ll have to see if I get the final release on Kubuntu soon.
I’ve tried some of the KDE4 apps. I still have the KDE3 versions as well for now, but the new ones have their own settings.
I’m not sure about Dolphin. I haven’t seen any benefits over Konqueror for file management yet.
I won’t get the funky effects until I get the nvidia driver working again. Something messed it up this week.