The iPhone 3G S has many new features that iPhone users have been asking for since the first generation iPhone. For starters, the new camera leaves not much to be desired (except for maybe a built-in flash). The new 3MP camera has autofocus as well as video capabilities. My favorite feature of the new camera is the tap autofocus. Simply tap on the object that you want to focus on and the camera automatically adjusts the focus and exposure to make that part of the photo the clearest. When taking video clips, there is some basic post production editing that is available and easy to use. It's one of the most advanced cameras that I've seen on a cell phone.
Voice control is a much longed for feature that allows people to speak certain commands to the iPhone, such as "Call John Doe" or "What song is playing?" Apple has been on the forefront of voice recognition software for years. Have you ever called Apple? Their automated phone system recognizes and understands full sentences, so why shouldn't the iPhone? Imagine being able to tell the phone to play a certain album - that saves a lot of time in navigating menus.
MMS messaging, that is, the messaging of pictures and video via a cell network is now available on the iPhone. One problem though - AT&T is not supporting this feature until "later in the summer" as was announced during the 2009 WWDC.
Tethering is an exciting new feature that would allow iPhone users to connect their phones to their computers and use the cell network internet to browse the internet on their computers. AT&T, however, is not supporting this feature at the current time.
Compass - A compass is built into the iPhone for more accurate directions. We'll see what third party software developers do with this new feature. I'm expecting some interesting new apps. Great for hikers, walkers, and explorers.