Live icons: For the clock app, the min & sec hand actually moves; weather app, changes to the actual temp instead of always a sun and 73 degrees.
Widgets would also be cool, I'm sure Apple can do it and make it work for iOS. The space that would take 2 or 4 individual apps could become one widget.
Newsstand should allow all news apps/mag subscriptions to be in it like the CNN, Fox, ABC, Times apps that dont support it.
Folders should allow more apps and allow you to choose an icon for them.
Live wallpaper, just make this an option for people that want to use it at the expense of draining battery.