Having read a number of posts here, it is clear to me that most people don't understand the technologies in question, and the implications of this switch.
Current iPhone is a (2.5G) Quad Band GSM + GPRS device, that also supports EDGE for enhanced cellular data rates. WiFi is also supported.
If the new iPhone is going to be a true 3G Device, it would implement UMTS. This replaces GSM + GPRS, as UMTS is the 3G voice standard, as well supporting data rates of 384 k/bits. The question also here is will Apple implement HSDPA (minimum). It would make sense if the new switch was to turn on/off HSDPA as this is the piece that will consume more battery power.