Our phone has a talk time of 8 hours and that's really important when you want to use your phone for internet and music. 3G needs to get back up to 5+ hours, something we think well see later next year.
Meanwhile, The Street claims that a 3G iPhone will be available sometime in the 1st quarter of 2008... but their historical accuracy has been quite poor.
Regardless, the fact that Apple is working on a 3G iPhone is not particularly newsworthy. Steve Jobs stated during the iPhone's Macworld San Francisco 2007 keynote that they are planning on making "3g phones and all sorts of other amazing things in the future" (video clip .mov 1.7mb)