At WWDC 08 Steve Jobs annouced the new iPhone 3G.
What sells me on it, is the GPS functionality.
Much like CarPC apps, you can make location based internet apps that will be really cool.
The iPhone 3G will go on sale in 70 countries by 2009.
It will be released in the U.S. and a few other countries on July 11th 2008 and will go for $199 for a 8GB version and $299 for a 16GB version.
No word on a 32GB version, but I assume that will be released later on with a price drop possibly.