At this point, I have a hard time believing that the new iPhone won't have GPS.
1. without GPS the iPhone would lack a key technology that it's main competitor, the blackberry, has offered for some time now
2. with the AppStore, the iPhone has the potential to be the leader in location based technology & software
3. For most of us who already have an iPhone, I don't think 3G on it's own is a compelling reason to upgrade whereas 3G+GPS+32gigs seems like a no brainer for an upgrade. My hunch is that Apple would like to attract a large % of upgrades, as well as new purchases, which will only help them achieve their goal of 10 million units sold for 2008.