As with iOS 4.0, the 4.3 update plays well with only certain models--and on top of iOS 4.0's limitations, 4.3 narrows the field even further. You'll need an iPhone 4 (the GSM version only--sorry, Verizon iPhone owners) or iPhone 3GS, an iPad or iPad 2, or a third- or fourth-generation iPod touch to take advantage of the update.
We got our first taste of the Personal Hotspot capability with --now that feature has made its way to GSM-powered iPhone 4s as well. Personal Hotspot with other devices via your choice of Wi-Fi, USB, or Bluetooth. (Note that iPhone 3GS users can only share network connections via Bluetooth and USB, and not Wi-Fi--essentially the same limits placed on iPhone 3G owners with tethering.)
For iPhone 4 users, the feature replaces the tethering functionality that , but wasn't supported by AT&T --and nobody's shedding a tear over that. The tethering functionality was limited--it only worked over Bluetooth or USB and just supported a single connected device----it cost $20 extra per month, required users to drop their unlimited data plans, and provided no extra data usage.
By contrast, the Personal Hotspot feature is more attractive. While it still requires that users clinging to their unlimited data plans make the switch to the carrier's 2GB Data Pro plan (which, admittedly, is $5 per month cheaper), AT&T has sweetened the pot by . And if that amount is exceeded, you can dip into the 2GB from your smartphone's data plan before you start incurring overage charges.