The last software update to 1.1.4 was back in February.
The next update for current iPhones is expected to be 2.0, sometime in June. That will open up the iPhone to third-party application developers. Those developers have been playing with a beta version of the SDK for months now. That means that, when Apple does formally rollout the 2.0 update, third-party apps should be following hot on its heels.
Apple doesn’t comment much on upcoming products. And so don’t be surprised if dates change slightly, or if additional functionality is announced.
The next, what’s being called “3G iPhone”, is also expected to be released sometime around June or so. The expectation is that it will run the 2.0 software, too and benefit from third-party development as well.
To me, what this means is the current iPhone owners will be well-supported into the future with an incredible breadth of new functionality on the horizon. As for the “3G iPhone”, no one really knows what it will look like (rumors abound that it’s both thicker and thinner, wrapped completely in plastic and metal, etc.) Nor do they know what its formal name will actually be. It might even come in several versions/prices.
And finally, it seems like the virtual vs. physical keyboard will always be up for debate. Ultimately, it’s likely just a matter of taste and personal preference.