At the World Wide Development Conference, the new iPhone, dubbed iPhone 3GS (speed) introduces a much faster interface and processor, cut and paste, yada yada yada, but what iPhone fans will really enjoy is the new 3MP camera with autofocus, auto white balance, and VIDEO!

BUt that isn’t more. Not only can users capture those priceless moments in video, but they can also edit those clips with the new editing app and then upload either to YouTube, Mobile Me, or email.

The camera shoots in standard definition VGA with audio and at 30 frames per second. Users can also swap between still photo and video mode on the fly. And a new API will enable integration of video capture into applications so that apps of the future will enable the video feature to it’s fullest potential.

There are plenty of other features as well, including vastly improved battery life, a digital compass, voice control, remote wipe in case users find they’re in the unfortunately position of having their iPhone lost or stolen, but the video option means that long weekends and vacations can now be enjoyed and remembered on the fly without lugging around yet another camcorder for video. Very nice.

Cost is $199 for 16GB, 299 for 32 gigs, and the 8GB stays at $99. Comes in black or white and is available June 19th.

Hat Tip – Mac Rumors Live Blogging