I don't think we need to see much higher resolution in the iPhone, unless the screen gets bigger. But even then, I don't think we will see a higher pixel density, just more to span the larger area.
Only thing I would like to see with the iPhone is for it to be able to play AppleTV quality videos; that way I don't have to choose between having one rip for my AppleTV and one optimized for my iPhone/iPod. I feel like I have to sacrifice either way. I don't care if it isn't playing in full-rez or in 5.1 on the phone, but it would be nice if it could just play it back to simplify my video library.
Only thing I would like to see with the iPhone is for it to be able to play AppleTV quality videos; that way I don't have to choose between having one rip for my AppleTV and one optimized for my iPhone/iPod. I feel like I have to sacrifice either way. I don't care if it isn't playing in full-rez or in 5.1 on the phone, but it would be nice if it could just play it back to simplify my video library.