Rumor’s are flying:

_32 GB of storage
_Higher resolution for the digital camera — 3 megapixels
_Video recording
_Upload video directly to Google’s (GOOG) YouTube

Kevin Rose also noted in a previous Diggnation that it would sport two video cameras, to facilitate video chat/conferencing.
All of it seems plausible so far. The 3G iPhone chip:
a 7.2Mbps HSDPA chip with all the [...]

Worthwhile: Saving the HDi platform for non-HD DVD media.
MS Don’t Kill HDi! An Open Letter from Format War Frontline
On a technical implementation level HD-DVD was farther along than Blu-ray, even at the time of its death. HDi comprised a powerful tool and a competitor that raised the stakes on its rival, especially because it was [...]

The two most interesting aspects of iTunes offering rentals—
_The implications for Apple TV—expect at least a software update to support the new functionality. Accessing the iTunes store from the living room is certainly one good step in reviving/re-inventing a cool product suffering neglect and lackluster adoption. A little more computing muscle/storage and the addition of [...]