One of the things that David Pogue commented on yesterday (David being one of the few living beings outside of Apple to operate the new iPhone) was how marvelous the LCD screen was on the iPhone. He said that when you use the 2-megpixel camera and look at the world though that screen, it was as big and open as anything he's seen on a consumer camera. Given that you can transfer those images easily via email, the Web, and other online tools via iPhone, this is one of the most "connected" cameras in the world -- WiFi, Edge, Bluetooth.
We don't know yet if the final version of iPhone (due out in June after FCC approval) will include video, but my guess is yes with H.264 compression. This could be a very sweet little point and shoot camera that you always have with you. More to be seen...
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Emailing a full 2 megapixel photo over an EDGE connection is an exercise in pain (slow). I tried a "mere" 1.3 megapixel photo from my phone when I first got it and decided not to do it again. My phone has an option that resizes photos down to 640x480 for emailing. WiFi or Bluetooth 2.0 (but not 1.1) is ok. But, ever then, sending multiple 2 megapixel files may be slower than many might expect.
I agree. The WiFi on the otherhand should be just fine.