
click to enlarge
The major features of iOS 4 can be summed up into the following:
Multi-tasking - Easily switch from one open app to another. To do this, all you need to do is to double tap your device's menu button. It's the strongest new feature that iOS 4 brings to the table, provided app developers update their apps to support multi-tasking.
Homescreen folders for grouping apps - Tap and hold an app and drag it to another app and iOS 4 will automatically create a folder that will contain the apps you've grouped together. After putting all the apps together in various categories you can rename the folder. Very helpful indeed especially for iPhone users who have maximized the screen limit for iPhone apps. Just group together common apps and before you know it, you'll have 5 or more folder icons containing all your apps.
Unified inbox for Mail - If you have multiple email accounts and you've set them up to your iPhone, you can now view all your emails from your various email accounts.
Message threading for email - iOS 4 lumps together emails that belong to a particular email thread. Great feature if you are discussing something through email.

click to enlarge
Wallpaper on homescreen - You can now change the background image not only of your iPhone's homescreen but the app screens as well. You can even have two different background images for both of them. With this feature, it's like having a new iPhone.
5x digital zoom and improved camera speed - It's amazing how Apple has improved on the shutter speed of the iPhone's camera. As a bonus, Apple also added 5x digital zoom. But of course, since it is a digital zoom, don't expect too much from this feature as pictures are blurry. But the improved shutter speed is a winner.
iBooks support - With the iBooks app now available for iPhone, you can synchronize your iBook accounts and read purchased books on multiple platforms (iPhone, iPod Touch or iPad).
Gift giving - iOS 4 now allows you to buy an app and have it delivered as a gift to your friends, family and relatives.
Spellchecking - This will be active when you are composing an email or text.
Wireless Keyboard Support - Equip your iPhone with a wireless keyboard. iPod Touch and iPhone 3G are not supported.
Improved Photo Gallery - Faces and Places category for viewing your iPhone photos were added. If you're a Mac user you'll enjoy this feature on your iPhone running iOS 4.