I'm not so sure about the camera. Is it really that big of a deal? I think most would agree the 5MP is most likely the best of any current smart phone.
What would 1080P video do? Most people watch their video on the phone anyway, 1080P on a 3.5" screen? I don't see that as a "Must have".
I think for most people:
1.) Bigger screen would create a huge adoption rate
2.) Faster processor with better gaming performance allowing newer, "Next Gen" gaming that is only possible on the new iPhone.
It's not only the video recording it's the fact of a 10MP camera as long as beautiful pictures...Think of it if we had this it would then shoot us past the line of DSLR and our iPhones would be better than DSLR. I mean sure not zoom but jesus think of the possibilities. Also 720P option on the camera thing 60FPS! Imagine that! But 1080p 30FPS videos? Jesus thats revolution. Then you could stream the video to the APPLE TV just imagine the possibilities...And i bet MANY people would want that camera. Maybe not just you because you probably aren't into photography but alot of people are.