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Yet another thing that my Sony Ericsson w580i does better than the iPhone. I'm telling you, there's a long list.

Seriously: iPod Touch + w580i > iPhone

Nokia all the way. Sony products are over expensive toys. Their latest Xperia stuff is garbage, $800 for a phone? Not in this economy nor a good one. Nokia has reasonably priced phones that pwn Sony's wobbly lineup. Blackberry is also better than any Sony out there. But then iPhone blows them all away with the App Store.
 
Not only a camera, but have it integrate with iChat. I think the next iPhones should have a small iSight camera in the front for video chats. That would be amazing.
 
Bluetooth. I have a bluetooth stereo headset that would be nice to use with the touch. Using fring with bluetooth would be nice too.
 
A camera and shake to shuffle

I also think it should include a camera for those random it has to be photographed moments. Also there should be a shake to shuffle feature, it is fun to play with :p
 
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