I just watched the guided tour. Yes, it is VERY cool. Although, the phone looks exactly the same, so at least I won’t have that coolness envy! The base 3G(S) is $199, and the 3G drops to $99. This from Apple:

Now you can shoot video, edit it, and share it — all on your iPhone 3G S. Shoot high-quality VGA video in portrait or landscape. Trim your footage by adjusting start and end points. Then share your video in an email, post it to your MobileMe gallery, publish it on YouTube, or sync it back to your Mac or PC using iTunes.

This is very cool. The camera looks to be way better, and the video feature is sure to spawn all kinds of new YouTube channels!

The new 3-megapixel camera takes great still photos, too, thanks to built-in autofocus and a handy new feature that lets you tap the display to focus on anything (or anyone) you want.

Again, this looks like a great improvement with the focus feature and macro.

Voice Control recognizes the names in your Contacts and knows the music on your iPod. So if you want to place a call or play a song, all you have to do is ask.

This should have been in the first version- or at least the second.

With a built-in digital compass, iPhone 3G S can point the way. Use the new Compass app, or watch as it automatically reorients maps to match the direction you’re facing.

Cool, but useful?

Cut, copy, and paste words and photos, even between applications. Copy and paste images and content from the web, too.

Def. should have been part of the OS all along.

Want more room to type on the intelligent software keyboard? Rotate iPhone to landscape to use a larger keyboard in Mail, Messages, Notes, and Safari.

Same.

Send messages with text, video, photos, audio, locations, and contact information. You can even forward one or more messages to others.

I am not a big messenger, but this is cool- once AT$T gets onboard with it.

Find what you’re looking for across your iPhone, all from one convenient place. Spotlight searches all your contacts, email, calendars, and notes, as well as everything in your iPod.

OK, nice…

So…do you upgrade just for video and a better camera? I believe the othe rfeatures will work on the 3G with the software upgrade…