I'd like to see a back button on the keyboard. I think that would be very useful when trying to get the cursor right where you need it.
I'd like to see a better notification system. Something like bitesms for texts, and emails.
I'd like to see apple make use of the lock screen with pertinant info, weather, missed calls, texts, voicemail, etc.
Better camera and software. The iPhone pretty much blows the competition away as it is, at least from what I've seen from looking at my friends droids, droid2, droid x, and evo. I'd like to keep this going, lol. 1080p recording and 60 fps or so would be awesome. I'm thinking a better lens or faster frame rate would help smooth up the video. A good camera in a phone is very important to me because I don't/won't carry an actual camera.
Better battery, and battery management. It gets better every hear so this will probably be a given. I'm using a jailbrake app called auto3g, and it has saved lots if juice on my phone when idle. Apple should have implemented something like this from the get go.
Voice to texts for emails and texts messages. This is something I know I would deffinatly use a lot.
Text to voice for emails and texts.
Voicemail transcribed to texts.
Customizable tones for email, texts, alerts.
Better/ louder speaker for iPod and speaker phone functions.
I like the screen, but I would be happier with bigger, no more than 4 inches, with retina. That would be awesome.
That e wallet thing that I saw posted up on the front page of macrumors not to long ago would be sweet aswell. I find cardstar very usefull, so I bet this would be very usefull also.
Real multi tasking similar to backgrounder. I find that way better than apples method.
A storage bump would be nice. Some people have a lot of stuff on there phone, which is awesome.
I'm sure there are some other things that I'll remember later, but that's it for now. I doubt highly that most of this stuff will make it in there though, but it's nice to dream!! Lol. On the upside though, I think next year will be a good year for android. If they get a phone that can match the iPhones screen, camera (there phones may have more MPs, but the photos and videos dont look near as good IMHO) and overall smoothness, I will be very tempted.