Another rumor I've heard (that sounds pretty unlikely) is that there will be a second camera on the screen side for video calls.

I would own an iPhone this moment if it had 3G and A2DP. It baffles me that they haven't enabled the latter on the current gen. My crackpot theory is that it took so long for them to work it out, they decided to make it another feature that the 2nd gen has over the first. Sort of like how Airport Extremes could use external disks with Time Machine, but it's "not supported."

As it is, I'm going to be a little torn when the 2nd gen version comes out. When it comes to a portable video player, I've found that ~30GB is enough storage space for a decent selection of audio and video. I'm tempted to wait until the iPhone has 32GB.
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Matt