-redesign the OS entirely...wasted space in my humble opinion. All these years and still only half the stuff supports landscape. Really?
-come out with a friggin gamepad adapter already. The ultimate in portable games shall not be ultimate until thou hast an 8-way digital pad, stereo speakers and a joystick...so sayeth the wise Alonso.
-HDMI output...HD video with component cables? This is the 21st century. We have the technology.
-Loosen up audio and video format requirements. Yeah, I know it's Apple and that's a pipe dream at best.
-Charge/USB keyboard Y adapter. Bluetooth is nice but not efficient, and Apple doesn't offer a realistic rollout bluetooth keyboard as far as I know.
-I would like to be able to connect to iTunes on any computer and just update an app without having to backup the entire friggin iPhone and use one of my five "allowed computers".
-Allow me to use ANY mp3 in my library to create ANY sound on the iPhone.
-Apple Voice recognition of the 90s, meet note dictation of the 21st century. Go forth and make babies. Preferably read back with as many accents as Worms (the game). It currently sounds like a woman talking on an electrolarynx. I prefer an iPhone that doesn't smoke, thank you.
-I would like to just say "Launch Angry Birds" and BAM, it launches the game. Better than a search bar and it fits neatly with multi-tasking.
-Redo the archaic folder design...12 icon limit? I have three game folders...does not look good. Folders within folders would be preferable, but make it flashy, like a bubble workflow chart that expands and collapses or something.
-Have an option to always open link in new tab.
-just for kicks, have the iPhone recognize the middle finger gesture. Have it close an app or something.

Sorry, still a bit frustrated from two years of dealing with a possessed 3G.