Apple also failed to add multimedia texting, voice dialing, video recording, cut and paste, and the capability to purchase iTunes music over the 3G network. There's also still no A2DP Bluetooth, which seems a particularly glaring oversight given the phone's excellent integrated music player.
The iPhone 3G announcement was bulked up with a slew of new applications for the device. Some highlights include Sega, TypePad mobile blogging, and Cow Music, a neat program that lets you play various instruments on the phone as well as mix music.
So what's the difference between this new iPhone and its predecessor? The most important one for many people is probably the price: $199 for an 8GB (versus $399 for the previous model) or $299 for a 16GB (versus $499 before). But don't stop reading there. Apple is allowing AT&T to subsidize the phone, but only with a $10 increase in the monthly unlimited data plan.
The iPhone 3G offers true GPS, which is significantly better than the previous model, which used triangulation via cell towers. The iPhone's large touch screen gives its GPS functionality a significant leg-up over what is offered on other smartphones.