So if the iPhone 3Gs is going to have video capability, and one can get video capability on a jailbroken iPhone, does anyone think Apple will allow a developer to release a video app for those of us with the iPhone 3G?
No, you will have to jailbreak if you want video, and honestly - video taken on the iPhone 3G looks like total crap.
The FPS is too low and the processor can't handle anymore, which is probably why Apple did not include video as a software update. With a 2.0mp camera and a crappy FPS rate, it will look like crap anyways.