Here's my ultimate iPhone:
iPhone 3G +
32GB of onboard RAM
4.0MP camera with LED flash, autofocus, autoexposure and 4x zoom
Hi-res Quicktime video capture
Stereo Bluetooth-compatible
Push-to-talk feature
microSD card slot for easy memory expansion
Google Maps turn-by-turn navigation/street level 3D mapping
Flash/Javascript compatible with Safari
Removable battery
All for $299!!!
