Main upgrade I'm looking forward to is an updated screen. We have had the same screen since the 2G iPhone
. Give us more resolution and richer colors.
I truly believe we will get a faster processor and new graphics chip since Apple really has gained so much over the competition in the gaming arena. Ofcourse with that we really need a better screen and hopefully a little larger 3.7" would be fine with me.
A better camera with flash really is a must..the low light performance is horrible on the 3GS. A good 5MP camera with flash would be excellent as long as the quality is as good as the HTC HD2's.
A front facing iChat camera would be awsome and it looks like its coming since it's shown up in the iPhone OS 4.0 software. Even if we have to use it over Wifi..that would still be pretty cool. Only problem is your friend, significant other, or family member has to have a 4th Gen iPhone. Guess I'll have to get my wife one too eventually.
Basically all I need is:
1.better bigger screen 3.7" OLED would be great w/ higher res
2.faster processor ala A4 iPad w/better onboard graphics processing
3.Double the 3GS system RAM---> 512mb for better multitasking experience
4.32 and 64GB storage options
5.5MP camera w/ flash
6. front facing iChat camera