John Gruber of DaringFireball.net, who knows people who know people -- no names! -- has weighed in with his opinion on what we just might see from Apple in terms of a next generation iPhone at WWDC 2009.
Very likely: July release with roughly double the CPU power, digital compass, better camera with video shooting + editing, and 16GB/32GB SKUs.
Somewhat likely: Same $199/$299 price point, 256MB of RAM
Just maybe: Better battery life
Very unlikely: iTablet at WWDC
Sorta unlikely but...: iPhone mini at WWDC.