My first iphone had horrible battery life (didn't last through the day with almost no usage). I had it replaced with a new one and I have no battery problems at all. Is it great? Not compared to a small and simple, non-wifi/edge phone, but for what it does it's pretty damn good. I now charge every other day when the battery shows a little less than half, If I let it go, I could probably squeeze in another day but then it would be dead. I use the phone part 3-4 times a day (maybe 1 hr of calling/day, wifi perhaps 1 1/2 hour/day, listen to music a few hours/day, don't use edge, check email quite frequently but manually - I haven't counted usage, so these are guesses, but generally I don't feel limited by the battery anymore.
With moderate use I'd say you should be getting more like 2-3 days standby and perhaps 5-6hrs usage. It varies of course, but yours is definitely very low.