If Apple is going to embed functionality into the phone, then it should at least be able to do the job one would expect of it.

Including a bare-bones 2MP camera is like adding video iPod functionality… to a 2GB iPod.

Being an owner of an iPhone, I’m well aware of its traits, including the fact that the camera is merely that of being part of the expectation of being able to take pictures, but not focusing (pardon the pun) on photographic quality, but instead putting more into the whole phone as a phone.

I was noting that Daniel made a mistake with the year in his post.

Hey, wait, is the iPhone 3G so last year? ;) Darn time travel machine must have left you confused as to the current date :)

I’m sure that the big gains in battery life are from software changes, as OSX is increasingly optimized for mobile devices.

The lack of an upgrade to the camera is in fact the biggest disappointment to me, as the existing 2MP camera takes pretty crappy photos in anything but bright sunlight. Plus competitor’s products are hitting 3 and 5MP, with enough detail to generate useable photos.

And I doubt that Apple has improved the software with any image processing tools (exposure, saturation) or video. If so, they would have shown it, as even the lowly calculator got a mention due to the addition of scientific functions.

With Me.com, its going to be cool to have everything updated without plugging in.
I was, I admit, thinking of a video conference function, and maybe a slightly better camera, and maybe cut and paste(although I think this is a 2.0 app possibility?) - but I think that Apple has done a great job, and also dropped the price so dramatically.
You have to expect all kinds of accessories to emerge now we are on 3G and 2.0.
This thing is going to sell huge!

Clear analysis Dan, as usual - any idea why they are allowing TWO months of no sales of the iPhone at all? Isnt that a potential loss of 12-15% of yearly sales?