But if the iPhone 4's current RAM and processor speed is good enough to run applications quickly and smoothly, then it shouldn't be an issue.
That's where we differ. I don't want "good enough", I want best available. That's why I buy them outright instead of going on a contract, if I had picked up an iPhone 3G 2 years ago I'd still be stuck with it while everyone else overtakes me.
Yeah, the 32 GB max storage space doesn't make sense now that it can do 720p video @ 30fps. I don't mind Apple's walled garden ecosystem, but I can understand why people dislike it.
Apparently a lot of Android phones will be able to record 720p video after the 2.2 update. There's already a hack that allows the Nexus One to do it.
I hear FaceTime will be between iPhone4 users only. That limits things a bit, considering there's way more choice in the market and I'm guessing these front facing cameras will become standard.