I updated my LG Shine a few days after the update became available and yes there are some annoyances that need to be fixed but, on the whole, I am glad I did the update. First off though, I don't use blue tooth at all so I don't know if mine works or not.
However, my battery life went from totally crappy on 2.1 to downright awesome after the update. I used to get barely a full day out of it with hardly any use at all. Often I would have to recharge my phone by early evening in order for it to last all day. Now I can power use my phone all throughout the day and only be down to about 60%-70% by the time the end of the day rolls around. Storing apps on the SD card is also a huge plus. I also find most of my apps run faster but the phone takes longer to boot up from fully powered down.
If you don't use blue tooth, I recommend the upgrade. Yes the occasional freezes are annoying as is the wifi freezing up (rest of the phone still works fine for me though even when this happens) but I think the benefits of apps to sd and massively increased battery life are well worth the other annoyances.
I also haven't had the phone freeze on me now for a number of weeks. In fact I can't even remember the last time it froze. Wifi usually jams up on me once a day though but it seems to do it more frequently in areas of my house where the wifi signal is weaker and hardly ever freezes in areas with a strong wifi signal. Maybe the signal strength has something to do with it.
For battery life, I also recommend a free app called Juice Defender. I downloaded it shortly before the upgrade and it does seem to have a pretty big increase in battery life.