Digital compass to give iPhone the satnav edge?

The T–Mobile G1's in–built compass gave us hours of joy when we first played with it last year. But aside from adding even more novelty value to Googl

Which is why this screen shot dug up by Boy Genius Report is so interesting.

It shows the new iPhone software packing a similar digital compass to the G1, offering up a realm of possibilities, especially as the App Store has given Android Market a hearty slapdown.

Potential changes could include overlaid graphics and text on Google Maps and at last bring proper, turn–by–turn navigation to the iPhone. That TomTom app is looking more likely than ever.