Depends if you like using custom themes i wouldnt upgrade because you wont be satisfied not being able to flash anything useful.
If you only want to use the crappy official PSP themes then i would upgrade.
Yes nearly all plugins dont work, and is really gay, but if you dont use many plugins now i wouldnt worry about it.
and formatting flash1 through recovery is not a problem, just restore default system settings through the official sony way
So in review if you like your current PSP's setup, dont upgrade because 3.71 lacks alot of features that you wont get for quite some time, id just wait to upgrade when its more stable and more customizable.
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