Yes, even if you don’t have the new iPhone, you can upgrade your software so that your current iPhone has some of the advantages of the new one. For free.
Hardware‐wise, the new iPhone has a camera that will take video. If you watch their demo, you can see some of the cool ways it works. (There are two models — the 3G at $99 and the 3GS at $199 and $299. The S model does video, has autofocus and 16gb memory.)
More significant to me is the new line of MacBook Pros. Now I am more behind. Sigh. If only there were a free software upgrade for my Mac that would make it speedier. (Update: a new OS, Snow Leopard, is coming out in October for just $29. It is supposed offer “speed improvements for Mail, Safari 4, Spotlight and more”. That’s not free, but I’m not complaining, since previous OS upgrades hit me to the tune of about $129.)