The next generation of iphone named 3GS is coming out on June 19. It includes a new 3 megapixel camera and a cool video camera with editing feature. The voice control feature lets you make calls using your voice. It's got a built-in digital compass.
The new operating system 3.0 has a lot of cool new features - cut copy & paste, landscape keyboard, MMS, Spotlight Search, Voice Memos, Internet Threading, etc.