Arnold Kim of MacRumors writes:
"One of the many new features provided to developers in iPhone OS 4 are new APIs that give developers full access to Video capture data. This could open the door to some interesting apps including Video Capture/Editing and more robust Augmented Reality apps when iPhone OS 4 finally becomes available to the public.
The iPhone 4 Beta SDK, however, also reveals the ability to capture video at higher resolutions than the current standard 640x480 ("VGA") resolution. These preset values suggest that a future iPhone will be able to capture at 720p (1280x720) resolution: