Saw it last night, enjoyed it.

I agree that it would've been nicer to see Tony Stark in armour more, but I can understand that the writers wanted to increase the plot complication for Tony by removing the armour from him and letting him be the hero without his powers. So that was an interesting angle.
The kid in the garage was also an interesting concept -- the idea of another potential Tony Stark in the making (i.e. child prodigy), only that he lives in a fairly mundane setting raised by a single mum, whereas Tony was born with a silver spoon in his mouth and had all the best opportunities in life handed to him. So it was pretty sweet to see Tony kinda passing on the torch at the end when he pimped out that kid's shed.
The one thing that kinda bugged me was the surgery to remove the palladium shrapnel at the end... why didn't he get that done before?!? I thought the whole reason why he had the miniature arc generator in his chest was because the shrapnel was too close to his heart or whatever to remove. He was imprisoned with a doctor... and say even if that doctor lacked the resources to surgically remove it, why didn't he then have the procedure done when he returned to the United States? Especially in Iron Man 2 when the poison was spreading... weird.
Unless the procedure to remove it was only recently developed... but I don't recall the movie explaining that to the audience.