Well, it seems the built-in Map application will in fact do turn-by-turn directions. The software implementation isn't a stand-alone GPS killer in its current state for most people though. At least it doesn't look to be from Apple's own web page on the subject.
I'm quite curious about this as a matter of fact. What do you see as the main differences between something like the iPhone maps applet versus a standalone GPS receiver?
I'd like to decide whether or not to replace my current Magellan GPS mount with an iPhone mount next month. I certainly like the idea of reducing the number of devices I'm using. And the Magellan software isn't all that great. What do you think would bug me about using my iPhone as my GPS navigator?
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