iPhone to Become One Stop Video Production Shop?

Business Week (via Daring Fireball) is adding fuel to the rumors of Apple's iPhone 3.0 may not only be shooting video come WWDC, but editing and sharing as well:

I’ve spoken with a source that is familiar with Apple’s plans for the next iPhone, which may well be announced at Apple’s Worldwide Developers Conference in early June. Evidently, shooting video is as easy as it is with a Flip, the ingenious device made by Pure Digital (recently purchased by Cisco). Then there’s an iMovie app that lets you quickly save the sections you want, right there on the phone itself. There may also be support for MMS, so the clips can be shared wirelessly with friends. And because of the iPhone’s relatively large screen, your friends don’t have to schlep to your PC or their Facebook page to see that video of your kids or your safari. Just hand them your iPhone.

Questing -- will this only be available on the next generation iPhone or will current (and older) iPhones be so blessed, lower-quality camera and processors not withstanding?

Rene Ritchie

Editor-in-Chief of iMore, co-host of Iterate, Debug, Review, The TV Show, Vector, ZEN & TECH, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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iPhone to Become One Stop Video Production Shop?

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I fear video wasn't mentioned at the 3.0 preview for a reason — to keep the new iPhone secret while not having us think we'll be getting it on the current iPhone.

Steve,
You very well could be right.
OR they could just be holding it back for the "AHHHHH" factor. Apple is notorious about not showing their hand at once. It's possible that they are still working on this feature and the API for it. They have delayed announcing it, and they plan on revealing it in grand Apple fashion at WWDC, i.e. "And this will be shipping to every iPhone with the new 3.0 firmware."
I really hope that's not just my wishful thinking.

One Stop Cluster LoFi Video Shop...? That's more likely. Love that headline!!
Curious what the shakey cam action is gonna be. Should make for some cool apps if they open it all up.
Probably won't be for Edge iphones.
Will it be just capture, save and send or will it also include stream, even if that requires wifi, that'd be nice.
Also where is the iphone case with the tripod adapter screw port on it. While we're at it, how about iphone video light kit? And why support external mics, get that sony wireless lapel mic on there.

This is wonderful... If they deny iPhone 3G owners this people will start illegally downloading the next ten iPhone firmwares and flashing their iPhone 3Gs with it...

I think it will at least be on the 3g solely based on the fact MMS is also on it. Probably a few more things up their sleeves I really didn't plan on purchasing another phone within a year. I will if this new iphone has better battery life.

They might not have mentioned it out of fear it wouldn't be done in time for 3.0. They probably don't want another "push delay" situation.

This should be intresting but I think that it's not a feature I'm dying to have on the iPhone. They should just work on the battery life issue this phone has don't you think? Shooting video and video editing? Sounds like it's going to eat up alot of batterry in my opinion...

@Joe:
It may consume a lot of battery life. But I can fix that with a charge. There's no fix for no video. Personally, I'd rather have more shorter-lasting features than less longer-lasting features, myself. Especially when I never use iPod, games, or YouTube. :)

I hope apple will not try to force us to upgrade our iphones by not giving us the video feature in the iphone 3g, because i still wouldn't upgrade, I just bought mine a couple of months ago...