I just received the new iPhone day before yesterday.
The most striking upgrade is the 8MP camera. What beautiful pictures and 1080p video! They blow you away. As good as any point and shoot camera, plus you have a lot of adjustments available. And you can modify the shots after taking them: crop and enhance. Also, the camera's instant on!
Another WOW upgrade is you simply talk to the phone and it does what you want it to do via "SIRI"—answers requests such as searches on the internet, takes dictation to answer your email, sets up appointments on your calendar, answers encyclopedia questions, does calculations, tells you the weather-anywhere-anytime, etc, etc, etc!
It's twice as fast via the new dual-processor A5 chip and renders 7 times faster than the iPhone 4—will be great for gaming.
It's identical on the outside, but the insides are all different.
I got a white, 32GB one this time!