Steve jobs announced several new iPhone features in the keynote at Macword, including:
The features fall very much in line with the previously leaked 1.1.3 update.
The new Google maps not only does location, but it also allows you to edit routes and add "pins" to the maps anywhere you like.
The SMS client allows you to send to multiple people, and the "thread" you create allows you to re-send to that same group multiple times.
There is a new "plus button" at the bottom of Mobile safari. Merely by tapping that "plus" button you can add any web shortcut to your home screen. Even better - web clips remember where you've zoomed and panned to - to customize the thumbnail on the home screen.
Jobs also confirmed the moving icons around the home screen does indeed use the "jiggly method," which clearly indicates to the user that you're in "re-arrange" mode.
The software update is available today and for free!