Not knowing all the specs of the iPhone, one can only speculate the interface and features fo the new iPhone. Here is a list of possible uses/applications.
Software Applications
1. Bar-Code Reader (Like Delicious Library)
2. Voice Recorder – PODCAST on the road
3. Video Recorder – Video PODCAST on the road
4. WiFi Finder
5. Bluetooth Finder
6. Play Music/Video wirelessly streamed to the iPhone.
7. JAVA Apps
8. Games
9. Transfer non-DRM files between other iPhones and Mac/PCs
10. Anti-theft protection (emails you automatically if the device is picked up and turned on)
11. Emulate Palm OS (with ease)
12. Run/view Office products (Gasp!)
13. Financial planner
14. Credit-Card/Checking Alert (Every time your card is used, get notified).
Hardware Add-ons
15.   GPS Interface
16.   Point of Sale Credit card System
17.   Driver License verification
18.    (check ages at a bar)
19.    (pull up police record data for law enforcement)
20.   Game controller
21.   Hands Free Carphone
22.   Bluetooth Keyboard Use
23.   Memory expansion unit
24.   Biometric verification (finger print scanner/reader)
25.   Automobile troubleshooting device/interface . (Diagnostic tool to Read/Scan Car Computers)
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Widgets
26. Netflix Que
27. Cheap Gas
28. Book hotels/flights/cars
29. Trade stocks
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Possible undisclosed features
30. Printing (Via WiFi/Bluetooth)
31. Filesharing
32. System partitioning/use as a boot device.