I really am fine with the iPhone as it is just I hope the following things are fixed.
-SMS Keyboard Lag! This is a PITA, and I am tired of having to quit out of the application, and reopen it multiple times just to be able to type out a message to a buddy.
-Safari crashes when visiting certain sites. Though it is not as often, it would be nice to not have to lose my spot when browsing the web.
-Application crashes, I guess this wouldn't be really Apple's fault, but rather the developer of the application.
-VOICE COMMAND, When driving, it would be nice to tap on my bluetooth headset's voice command button, shout a name out, and have my iPhone dial it. I guess not really that important to me, as I shouldn't be talking when driving anyway.
I really don't care about talking GPS as my car already has a GPS built in, and my first generation iPhone doesn't support it anyway. MMS and copy & paste would be nice, but I also don't care for these features as I have learned to live without them.
As for non-hardware improvements, I hope Apple gets that Push notification service up and running, so I can actually receive Instant messages on the AIM Application I got from the Apps store, as designed!