Since I read through all the posts regarding this update, I feel compelled to make some observations:
If this rumor is legit (not willing at this point to bet one way or the other), this seems like a reasonable number of features for a point update.
Multiple SMS recipients i something I need from time to time, so that is nice.
The Google GPS is kinda neat. It'll be fun to play with, but frankly the outcry for GPS confuses me a bit. I don't see the big deal. As a general rule I'm fairly aware of where I am. I can read both a map and street signs so a big 'You are here' marker in Google Maps seems less than a necessity. Maybe in a rural area it would be more helpful, so maybe that is the draw.
Rearranging the home screen? Again kinda cool, but will probably be more important after the SDK.
As to the still MIA features, I think the necessity (or lack thereof) for MMS has been covered sufficiently. Email works fine for me so if MMS never shows I could care less.
Copy and Paste? I'm still trying to figure out a practical application for this in the current state of the iPhone, but I'm sure there must be one.
Finally, why all the outcry for iChat? We have SMS. Some people seem to think mobile iChat would avoid SMS usage, but I don't think that's the case. My last phone was a Samsung Blackjack on AT&T. It had the Yahoo instant messenger installed. I was told by an AT&T rep that messages sent through the IM client count as SMS usage, not data (I saw evidence of this on my bills btw). I therefore have to assume that a mobile version of iChat would work the same way. So in essence a mobile iChat would just be another SMS button. Unnecessary.
That's my $.02. If someone wants to dispute feel free. I'm not sensitive. The (sometimes heated) discussion of all viewpoints is why I keep coming back.