We returned from a Bermuda cruise about a week ago and thought the bus/ferry system was fantastic. There is a new bus terminal in Hamilton that makes transferring from one bus to another a cinch. The buses were comfortable and air conditioned, and ran frequently. Ferries were super, as well -- still the quickest and easiest way to get between the Dockyard and St. George.
A three-day bus/ferry pass is just $28 for unlimited use on consecutive days. It was worth every penny.