You're a flat out idiot if you think iPhone 2 will be out before Q4 of 2008.
What are the new features going to be? More space and 3G?
Oh wow, that must be worth $500 to upgrade to.
New features
GPS, there were articles either on BGR or TUAW on Jobs working together with Telenav and seeing how AT&T already has Telenav it would be a smart thing to do.
3G, working on it but the main problem is still battery life, let alone AT&T getting 3G up and running nationwide, I know it still is NOT up in my area, it comes and goes and comes and goes
16Gig of Memory and from a salesperson I trust at the Corp store there has been RUMOR of more memory but nothing in writing / email
More applications, or programs however you want to slice it.
I have seen more iPhones locally on T-Mobiles network
And finally "Forgot to add this" Due out is Christmas or Late fall in 2008 no sooner