You now can purchase ringtones from the iPhone's iTunes store.
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To get to the ringtones, just click the "More" button.
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Genius for App store
You now can turn on Genius recommendations for the iTunes App store.
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Like with music, Genius will suggest new apps based on titles that you've purchased.
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The App Store now has a "Top Grossing" category.
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iTunes credits
You now can see your iTunes credit right on your phone.
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On the iPhone 3GS, the video-editing feature allows you to replace your original clip or let you save it as new. This is very welcome.
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Phone number paste
You can paste phone numbers into the keypad.
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Multimedia messaging
In preparation for multimedia messaging, iPhones with AT&T version 5.0 should now have the MMS commands in place. Note the small camera icon in the text messaging application.
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By clicking the camera icon in the previous slide, you are given the options to use an existing photo or take a new image.
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You're also presented with MMS commands in the camera.