Apple is going to introduce a new software update for the iPhone soon, which may have some new GPS features that would imply turn-by-turn directions.
Another feature which may or may not make it into 2.1 is the ability to copy/paste. If you consider that there are already some applications out there which allow users to copy and paste on iPhone, Apple is most likely to have these features in the new version.
It has been also rumored that the 2.1 version will provide background push notification service that allows live apps to receive Internet data while shut down.
