What changed with the iPhone...
Here is a link of a transcript of the keynote for the iPhone:
MacRumors.com : Worldwide Developer Conference 2008 Keynote Live Coverage
Here is a summary of what changed...
The iPhone is programmable now. It has three distribution methods. Ad-hoc distribution, I can write a program and give it to up to 100 people. Enterprise distribution for corporate, in-house applications, and applications distributed via iTunes. 250,000 developers have downloaded the SDK so far, myself included. If you write a program, you can give it away or sell it through the "app store". They deal with the credit cards, DRM, server space, and distribution. It is a 70/30 split.
A free program that will be available is Loopt, a location-aware social network. The app displays a map with pins representing where your friends currently are. Sounds cool. You could also use it to track your kids. Sega will be selling games for it in the near future.
Complete support for Office documents (Word, Excel, and now PowerPoint). Support for iLife documents.
Complete support for ActiveSync and exhange. It works with .Mac syncrhonization.
3G support, 2.8X faster than the EDGE netowork, and 36% faster than the NokiaN95 at downloading web pages. It does tabbed browsing btw.
Improved battery life:
3G has great battery life on iPhone. 300 hours of standby, 2G talk-time now has 10 hours (as opposed to 5), 5 hours of 3G talk-time (most phones only have 3 hour 3G talk time), 5 to 6 hours of high-speed browsing, 7 hours of video, 24 hours of audio.
GPS Support: With GPS, the iPhone can do tracking. A pulsating dot is moving across the Google map as a car drives down Lombard street.
The price dropped in half! $199 for the 8GB version, and $299 for the 16GB version.
Last year the iPhone sold more units than all of the windows mobile phones put together by all of their different manufacturers.
Quite a bit changed. I'm looking forward to see what 3rd party developers will do with it.