Next-generation iPhones likely to focus on internal improvements.
Unpatched OS X Java Vulnerabilities Drawing Attention
CVE-2008-5353 allows malicious code to escape the Java sandbox and run arbitrary commands with the permissions of the executing user. This may result in untrusted Java applets executing arbitrary code merely by visiting a web page hosting the applet. The issue is trivially exploitable.
Unfortunately, these vulnerabilities remain in Apple's shipping JVMs, as well as Soylatte 1.0.3. As Soylatte does not provide browser plugins, the impact of the vulnerability is reduced. The recent release of OpenJDK6/Mac OS X is not affected by CVE-2008-5353.
The only recommended workaround at this time is to disable Java applets in all browsers and to disable the 'Open "safe" files after downloading' option in Safari. Disabling Java applets will cause some websites to behave incorrectly, but no other protection against exploits of the vulnerabilities is available until Apple releases a patch.