To everyone that doesn't believe the resolution increase to be true:
PLEASE understand that the doubleing of resolution will allow all current iPhone apps to run and look completely unaltered. When devs take the time to make the apps for the new native resolution, the only benefits that will be obvious would be much sharper text and viewable text at much smaller sizes.
Anyone who thinks that the current iPhone screen is good enough either has poor vision, or they have never tried another phone from is year. Go to a verizon store and check out a droid....the pixels are unable to be seen by the naked eye and text is approaching the quality and readability of printed magazines.
Apple made it explicitly clear that they are going to rival the readability of printed text with the new iPhone....the only possibly resolution bump that makes sense for the iPhone is 960x640. If they went with 720 or some other aspect ratio, then the millions of current iPhone apps wouldn't display correctly on the new phone and thus would require modifications. Apple doesn't want to have any problems with people using their already paid for apps....bumping to double the resolution on the same screen size allows the use of all current apps..and they will look identical to the current iPhone (each pixel on the 3GS would be displayed by 4 pixels square on the new iPhone...those 4 pixels being so tiny that they will take up the space of one pixel on current gene hardware)
I hope people understand this explanation...I'm tired of reading the same posts about how the resolution is too high or it will make rewriting of apps necessary...its just completely untrue.
Can't effing wait for this new iPhone ....I'll be waiting in line on launch day (which I sure hope is at the beginning of June rather than late June....cant wait!!!!!)