As part of Steve’s keynote today, a new update of the iPhone firmware (1.1.3) brings about various new features.
This includes a GPS-like wireless location ability (based on proximity to cell towers and wifi APs) to Google Maps, as well as an improved interface which gives you the ability to move widgets around, including new panes (think Springboard). There’s also WebClips which lets you treat web sites as widgets.
Do note that while it’s attractive to update, you will lose any ability to jailbreak (and unlock) your iPhone. See if its worth updating as I demonstrate the iPhone’s new abilities.