It's unbelievable to me that apple did not at least increase the megapixel to 4 or more on the camera in the new 3G phone. Unreal. That's one of the most important pieces of hardware in the thing as the current quality is decent, it still needs better exposure, and more pixels tofill in detail even more especially with all the new cool app store applications that will utilize your IPhone camera a ton now. Also, no zoom? wtf. They should at least have a 2x real zoom on this thing. Forget Digital zoom altogether. This thing doesn't even have a real zoom.' Point is, if you made the camera that good to begin with, there's no reason not to improve on it also in each generation Iphone, just no excuse. It plays a huge part of our daily lives especially nowdays and with these new online apps. And don't tell me it's a feat to do this. Apple has broken that barrier as we have seen in many ways. Adding improved pixel and functionality to the camera is a must. They failed on that part in my opinion with the new 3G. Now if you're one to day that more megapixel means more disk space required...SO WHAT! You now have higher quality pictures on the go, and you can take them off your Iphone if your disk gets to full...bit whoop. I'd much rather enjoy higher quality pictures coming off my IPhone at each new generation than 2 megapixels for the next 5 years. Lets face it, 2 megapixels has it's obvoius limitations. Now we have to wait (hopefully and unfortunately) for the 3rd Gen Iphone to have a higher megapixel camera and zoom. That depends on if Apple smartens up and realizes how important pictures really are to people and life. I'm pretty sour about no improvement on that camera. Ridiculous. Seems like all manufacturers neglect that in all phones and to this day US is still only producing phones with 2 megapixel cameras and we've had only 2 megapixels for HOW LONG NOW??? A LONG TIME. Unacceptable. We have regular cameras on the market doing 10 megapixels for consumer cameras so why aren't the Phone cameras increasing in the technology a bit also? Face it, Iphone is a tool. People expect most of the things to be upgraded not just one or two things each generation.