It's coming!
iPhone4 has been announced. With features like 2 cameras so you can videochat on the phone, true multitasking (whatever that is) which apparently doesn't affect performance, iBooks a la iPad, HD movies and LED flash. Can't see the opposition catching-up any time soon!
Features
http://www.apple.com/au/iphone/features.html
Now, if Apple could just do something about the crappy phone companies...
iPhone 3G and 3GS users haven't been forgotten yet
Version 4 of the iPhone system will feature folders, better Mail, multitasking [not 3G] and iBooks too. And you may be able to bluetooth-connect a keyboard!!
http://www.apple.com/au/iphone/softwareupdate.html