The friend I sold my IIIxe to is also very happy. I have had no problem with Graffitti on my IIIc which others have mentioned. I was also concerned that a Palm with color might be slower than other Palms. It actually seems a little quicker. It's great to see pictures in color.
Maps are also much more usuable.
I highly recommend it. The color is a nice addition, easier to view in daylight. The 8 MB of memory has been more than enough for all of the applications I use, as well as reference manuals, schematics, and drawings of the equipment I work on. I use it daily, and find it to be indespensable for keeping up with phone numbers, addresses, and my schedule. I have used a Casio BOSS for the last 8 years and have just purchased a Palm IIIc.