The new iPhone's video capabilities also borrow handy features from more-expensive cameras and camcorders, such as the . Namely, the ability to geotag your videos with the iPhone's GPS function--and I'd assume somewhere down the line, the ability to embed those geotagged clips in a map and watch clips shot at the location of your choice.

On the still-camera side of things, the 3-megapixel resolution isn't likely to put your DSLR out of a job, but Apple wisely focused on features rather than on a bloated megapixel count. With a lens and sensor the size of the optics on the iPhone, a higher megapixel count would likely have just made for lower-quality images that you could blow up and crop more easily. A big, crappy picture is still a crappy picture.

Instead, the revamped iPhone still camera adds an autofocus system and a macro lens, and it borrows handy tricks we've seen on touchscreen point-and-shoots such as the . Simply touching a subject on the iPhone screen brings that object into focus.

And then there's that whole wireless connectivity thing, which was the talk of CES when Sony unveiled its Wi-Fi-enabled, $500 . So for $200 less (if you pick the 32GB iPhone 3GS) or $300 less (for the 16GB iPhone 3GS), you'll be able to get the Cyber-shot DSC-G3's --Web connectivity and a browser--plus all those other iPhone goodies. Not a bad deal at all.

Of course, we haven't had the opportunity to test any of the video or still-photo features on the new iPhone, but in theory, this much is true: the iPhone 3GS looks like the camera phone to be reckoned with, low megapixel count and all.