A post over on palluxo speculates that Apple is busy developing video capability for the new iPhone 3.0 and will offer portable camcorder capabilities and of course all this is simple speculation as nothing official has come from Apple.
iPhoners know the iPhone only has photo capability and therefore makes sense that Apple would introduce video recording to the new iPhone especially now that Google Android has released Android 1.5 Cupcake which includes video recording for the T-Mobile G1.
However to replicate true functions of a camcorder into the iPhone is a big order but if it can be done then Apple are the people to achieve this. We know that the new iPhone will have 100 new features including copy & paste which has be long awaited but there was no mention of video.