IMO none of the Toy Storys were among Pixar's best. Toy Story 1 was far better than Toy Story 2, but neither were masterpieces.
While Toy Story 3 was certainly better than 2, it also was not transcendent like Wall-E and Up have accustomed me to from Pixar. That said, it certainly is far superior to the CGI comedies that are spewed out by dreamworks, warner brothers, and fox. My view might be tainted by the fact that everyone in the theater, including the adults, were extremely loud, laughing obnoxiously at everything, explaining details to their kids, etc. The theaters in my area are generally half decent, but the crowds are horrible.
The short at the beginning was very good I thought.
I was also impressed by a trailer for an owl movie.