BusinessWeek claims to have had a natter with someone, "familiar with Apple’s plans for the next iPhone," who says Cupertino will shovel in an iMovie editing app. This means you'll be able to cut movies on the fly and then upload them directly to YouTube.
This would certainly put the iPhone right up against the likes of the Flip Mino and Creative Vado when it comes to easy–as–you–like video. And with the latest iMovie the best ever, you can bet the dedicated app will be top drawer.
As ever, this remains speculative. But seeing as most improvements to Apple's mobile will come via the iPhone 3.0 software, this kind of hardware jump is just what they need to draw in the crowds.
We'll be at WWDC in June, reporting live. But while you wait, reacquaint yourself with the iPhone 3G in out hands–on video.