Why would any one with an iPhone want to be able to connect to other
near by iPhones?
That sounds like a Zune feature that makes no sense to me. If you want
to connect call them or text them. What am I missing here?

Note this...

iPhone OS 2.0 will include Bonjour, full-screen Safari mode, more
Posted 7 March 2008 @ 6pm in News

Apple's developer documentation reveals some interesting new features
that will be included with iPhone OS 2.0, due in June, or perhaps an
earlier OS release. The functions are already included in the "Aspen
Emulator" included with the iPhone SDK, which carries OS version 1.2.

Bonjour Full support for bonjour (Apple's zero configuration
networking scheme) will be included in iPhone OS 2.0. This allows you
to discover and connect with other nearby iPhones. Bonjour is
available in the foundation, core foundation and base system includes.
This feature was existent but dormant in previous iPhone OS releases.
Full-screen mode in Safari This means that Web apps can be displayed
without the Safari address bar and other elements. With an appropriate
meta tag, a Web app launched from the home screen can automatically be
launchd in full-screen mode.
Support for SVG (scalable vector graphics 1.1.): a resolution-
independent image format that is highly compressible
A series of new CSS effects some of which are hardware accelerated,
for transforms, transitions and animations

Also another person posted a Java Virtual Machine is coming to the
iPhone courtesy of Sun.
http://feeds.tuaw.com/~r/weblogsinc/tuaw/~3/248092874/

Again why should I car - I don't miss it? I thought Java already was
on the iPhone. Isn't there a setting for it?

Sun Microsystems is known for many things, but it is probably best
known for Java. The promise of Java is that programmers can write an
application once and run it on any machine, or device, that has a Java
Virtual Machine (a virtual environment that runs on a computer which
includes the Java runtime, so that the Java code can run).

That's the promise of Java, sadly, the reality isn't always the same.
Java Virtual Machines on different platforms often require special
code (which kind of defeats the purpose) and most damning of all
(especially on the Mac) is that Java has its own library of UI
elements. Unless a Java programmer goes out of their way to make sure
their app looks like a native app, it often has an unmistakable 'Java
look' to it.

Sun now wants you to have all that Java fun on the iPhone. Shortly
after the launch of the iPhone SDK, Sun started looking into the
possibility of making a Java VM for the iPhone. After some
investigating, they are sure that Java ME (that's the version of Java
optimized for mobile devices) on the iPhone is possible and Sun wants
to bring it to you. I'm sure there are many Java developers out there
are very happy to hear this news.

And last but not least a slew of the best games which already run on
other mobile devices are being ported by Gameloft to the new Apple
firmware.
http://www.macrumors.com/iphone/2008...phone-in-2008/

Gameloft announced that they will bring 15 of their games to the
iPhone platform. Gameloft, as you may already know, has released some
iPod games on iTunes already.

Pocket Gamer has a mock up of what one of the games may look like.
http://www.pocketgamer.co.uk/r/iPhon...ews.asp?c=5797

Interestingly, this screenshot was shown off in Gameloft's keynote
speech in the days leading up to the iPhone SDK announcement. Gameloft
produces some big-name games for other mobile platforms, including:
Tom Clancy's Rainbow Six, Rayman, Might and Magic, and Prince of
Persia.

The good folks at Six Apart also mention that they are hard at work
with the iPhone SDK to produce a native iPhone app for Typepad
blogging. If you have used a previous Windows Mobile native client
from Typepad, you can only imagine what they will be able to do on the
iPhone with its superior UI and hardware..

Pity the poor folks locked into contracts with other cell carriers who
can not have an iPhone, I bet we will hear a lot of sour grape posts
from them regarding these developments.