I'd also like to see real-time GPS with Google Maps perhaps, 3G support, and video capability. The GPS and 3G support would only be possible with a hardware update correct?
For 3G.... yes. For GPS... NO!
I use my Palm Pilot and TomTom software for my GPS system. All the iPhone needs is an external bluetooth GPS receiver and the GPS software. I already have the receiver so as soon as Apple or a 3rd party developer comes out with the software I will be retiring the Palm Pilot.