What Pam said. The stock of iPhones has gradually dwindled over the last 2 months in preparation for the announcement today. Apple did learn from the iPhone introduction that people are not appreciative of their new investment immediately devaluating after purchase! Remember that the new iPhone won't actually be available for purchase until July.

Doug - unfortunately, the new features require new hardware so you can't upgrade your current iPhone to the new spec. But the 2.0 firmware compatible with the first generation iPhone will still add some nice features including the App store, iWork and Office support (nice for Mac users), and compatibility with "push" Email if you subscribe to .Mac (ooops, Mobile Me).

It sounds like Tomtom (a major figure in the car GPS navigation market) is preparing a turn by turn product that'll work with the GPS chip in the iPhone 3G, essentially turning the iPhone into a Tomtom GPS navigation unit.