I suspect that the from factor of the next generation iPhone will remain unchanged. From an ergonomic standpoint, the design is already excellent.
What we need is revisions under the hood. Everyone expects 3G - certainly if the iPhone is to crack Europe) and 16GB (hey, we may even get a 32GB model!!
) to store all those movies Apple wants us to rent/ buy. But what we also need, almost before any increased functionality, is better battery life. It may be that the iPhone will need a thicker body to incorporate a larger battery, especially since 3G sucks the life out of a phone much faster than Edge.
That said however, the one hardware modification that might improve the iPhone is a better camera with a video facility. If video conferencing is to be viable, then iPhone 2.0 will need a front-mounted camera as well as a back-mounted one.
Perhaps the most significant upgrade to the iPhone will come from software improvements. Things like cut and paste in notes/ messages and the ability to type with two thumbs in horizontal mode would be great. But on the whole, what were looking for is improvements not fixes.
This is Apple's first phone. It has captured 20% of the smart phone market. It took Blackberry years to achieve its market share. Apple has done this well inside a year of launch with its 1.0 version. This is probably one of the most sccessful product launches since the tampon!!!!
I am totally satisfied with my iPhone. It is the best gadget I've bought since Sony's first VAIO ultralight laptop in 1998, the PCG505. I'll definitely upgrade to iPhone 2.0. My daughter has already got her eye on my current iPhone.