I have the H4n. I like it plenty, and I own enough gear to do a full recording any time I want. Unless I'm planning on offering a recording for sale, I can't think why I would delve into the full pile of gear. At most, a mic or two, cables and the H4n would cover me. I've plopped it on a table, and recorded a full band, and you can hear everything well. More careful placement would yeild excellent results, and it would be absolutely ideal for grabbing a live show.
The original H4 garnered complaints to the point that conventional wisdom said you'd be better off with the H2. The H4n addressed all these complaints, and was very warmly received by former critics. The n replaced the H4, which was no longer available when I shopped, so I don't recall the exact shortcomings offhand, but remember that they were not inconsequential.
Haing said that, I opted for the 4n over the 2 to get the ability to use external mics, which has turned out to be unnecessary, as the built in pair work far better than I expected. The ability to multi-track is cute, and I don't really regret the purchase, but I'm a little hesitant to recommend it over the H2. Only the 2 has the built-in ability to do 360 recording, which can come in handy.