iPhone software/firmware update imminent: What's expected; hack/unlock concerns

Backing speculation spurred by an image on Apple's iPhone store credit page that shows software version 1.1.1 (3B13) -- the latest current release is 1.0.2 (1C28) -- we've received word from reliable sources that an iPhone software/firmware update is imminent. Here's what's expected:

iTunes WiFi store Already available on the iPod touch, Apple promised delivery of the iTunes WiFi store for iPhones some time in the month of September. The functionality is expected to be added to the iPhone with this firmware update, or independently pushed to the iPhone via EDGE/WiFi.

Playback controls while sleeping/locked The iPod Touch sports a function that allows the home button to be pressed twice in order to bring up various media playback controls (volume, skip forward/backward) without fully unlocking the device. This feature is expected to be added to the iPhone in this release.

International/multiple keyboard support As previously reported the iPod Touch sports keyboard functionality that is far more robust than the iPhone's, currently. It provides keyboards in 14 different languages, and supports alternative keyboard formats including QWERTZ and AZERTY. It can also make two or more keyboards available simultaneously, and has a feature that allows you to quickly type a period by double-tapping the spacebar. These features are expected to be added to the iPhone's keyboard function in this software/firmware update.

Bug fixes/stability enhancements A slew of bug fixes and stability enhancements, including improvements for WiFI/EDGE networking are expected to be incorporated in the forthcoming release.

Hack/unlock concerns There is a significant likelihood that this update will undo unlocks (allowing the iPhone to be used on networks other than AT&T) that make use of a buffer overflow, including the iPhoneSIMFree method, and the freely available iUnlock method.

It is also likely that the iPhone will need to be re-hacked after the update to accept third-party binary applications (see our guide for instructions on doing so). Note that after changes were made to the iPhone's software with iTunes 7.4.x, some iPhones entered an endless rebooting cycle when re-hacked, fixed via this method.

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