We've done OK. I bought in 2001, Wife bought 2-bed house in 2000 (before we met). Sold my 2 bed flat in Jan 2004 and we sold Wife's place in June this year. Now renting. I don't put myself in the STR bracket though as our position is more cicumstantial than planned. We are not completely settled in the area where we are living so wanted to bide our time rather than wading in with another purchase straight away.
Yes, it would be great if prices went down but we are still looking and if the right place for us came up in the right area, we will go for it. I can't spend my life waiting................