However, an interesting screenshot from iPhone Firmware 3.0 beta which is labeled "Publish Video" suggests that video recording and upload capabilities could arrive in the next
generation iPhone which could be released in June based on iPhone's annual product cycle.
The screen (as seen below) shows up when you try to upload photos to MobileMe. Engadget Mobile who stumbled upon this interesting screenshot believe that it's a typo as it shows up while trying to upload photos. However, Mac Rumors feels that it suggests that we could finally see the video recording feature in the next generation iPhone.
If you remember when Kevin Rose confirmed that Copy and Paste was coming to iPhone firmware 3.0, he had also mentioned that there would be NO video because of some technical reason.
But Mac Rumors believes that the next generation iPhone which is expected to be a lot more powerful than iPhone 3G and rumored to have multi-core processors and GPUs could probably help overcome the technical problems to bring features like Video recording to the iPhone.
I agree with Mac Rumors but not entirely as I don't think an iPhone with just multi-core processors and GPUs will convince Apple to bring video recording capabilities to the iPhone. In my opinion, if Apple announces video recording feature in the next generation iPhone it will also include a much better camera with FLASH (hopefully) and video capabilities (and not like the non-video recording camera in current iPhones).
Unfortunately it will disappoint users of the 1st gen iPhone and
iPhone 3G especially since we have seen jailbreak apps like Cycorder already bring video recording feature to the iPhone.
But if the next generation iPhone has significantly improved hardware to support the feature; it would probably not disappoint me as much.
How about you?[Engadget Mobile via Mac Rumors]