Next-generation iPhones likely to focus on internal improvements.
iTunes 4.2 Released
iTunes 4.2 allows you to sign in and buy music from the iTunes Music Store using either your AOL or Apple Account, view the iTunes Music Store in a separate window, and includes a number of performance improvements
This may represent the minor iTunes update previously rumored. iMovie 3.5 and iPhoto improvements are also expected shortly. Work on iSync 2.0 is reportedly still in the early stages, but should bring improvements to intra-application communication and syncing.