Hmm, I haven't had much issue with it, although the functionality is pretty bare bones, I don't use the capture widget thingy... no need to. I can create and transition (todo) items in my existing .org files, use the agenda, and that's about as complicated as I want to get on my phone.
For anything more, I use my laptop where I can take advantage of all the proper org-mode functionality.
It might come down to how you use org-mode, as well. I create a .org file for each client/project. If I'm using org-mode to write a document (beats markdown IMO), I'll create a separate file and store it in the client/project registry (my own mgt system, outside of org-mode scope but implemented with org-mode knowledge).
Having lots of relatively sparse but easily identifiable (and discoverable) .org files makes mobileorg quite usable, for me.
ps: I see you commented on org-mode elsewhere in this topic. I also make heavy use of a notepad (unlined paper please - you're not the boss of me!), but prefer pencil to pen. I have about 6 or so high quality pencils I keep on high rotation, nice and sharp courtesy of a burr sharpener.
It doesn't seem to handle vendor-specific prefixes (-webkit, -moz, etc). I suppose you could write your own mixins (plugins) to handle that, but still, a shame.
You'd best post the model number (found on the underside, near the hinge) - you can't just swap out Apple motherboards and expect everything to work, in my experience.
If the data's urgently required, you can probably grab a cheap [PS]ATA-to-usb adaptor and mount the volume on another machine running osx (or linux).