Tom B., good list. Here's my take on it:
GPS - possibly, but it remains to be seen how GPS-aware Leopard is. There were rumors about it being very geo-oriented.
16GB memory - absolutely, and it's certainly coming.
iPod game support - I think we'll see even better iPhone games.
Removable battery - No chance, sorry.
A mini version of iLife - depends on what apps you have in mind. "Mini versions" of iTunes and iPhoto are already on it. iDVD wouldn't make sense; iMovie and GarageBand are almost equally pointless; same goes for iWeb.
Microsoft Office support - Eh. As much as iWork will support it, I suppose. I've worked in an all-MS software development office for years, and I almost never have to (or want to) open Office documents on a mobile device.
A 3 mega pixel camera (or higher) - my main camera for years was a 2 Mpx Canon, and it took
awesome pictures. I'd like good optics at any Mpx.
A camera on the front for iChatting - Yup. I don't like the idea of two cameras - I've never seen this problem solved elegantly on any mobile.
A non-contract version (pay-as-you-go) - Not interested in it personally, not sure how many people are.
Vibration (if it does not already have it) - Pretty sure it has it; there is a "silent mode", in any case. My guess is it's not a very "sexy" feature so it hasn't been advertised.
Direct downloads from iTunes Music Store - Not for another year or two, at least. This would be slow and drain your battery. We don't have the technology to make it enjoyable yet.
Flash for camera (also can be used as a torch/flashlight) - With a screen that big and bright, why not just use IT as a flashlight? I've used a 3G iPod to walk through the woods.
"Maybe i'll have to wait for the iPhone 2 for all of those..."
Some of them might be available as iPhone 1G is revised - increased storage, for instance, and all the software features.
Don't be afraid to be an early adopter - you'll get the coolest features right away, and you'll buy the second generation anyway, after you sell the first iPhone for a good fraction of its price
🙂