Engadget just updated that they have proof (albeit a bit weak) that this is actually the next gen iPhone. It also appears that it will have a forward facing camera and an microSD slot.
If I am going to spent much money for an iPhone, I will go for the newest to the collection. There is the blackberry bold 9650 pearl 3G. This phone will compete well with the iPhone by bringing activity apps and more to the traditional blackberry. There are also a number of upgrades from the last version; including things like a touch sensor instead of a trackball. The sleeker design is certain to appeal to many.