I just read an Apple Insider blurb that the ATT CEO stated the iPhone V2 could be here by late May/early June. I guess my recently mangled 8GB will have to stay in my pocket a few more months.
As far as sound quality, I have never had a complaint about the iPod function in my iPhone. Granted, I don't have >$1000 UE customs, but I have decent iems. I'm also a recovering high end audiophile - so I really do know good sound. The iPhone, to me, sounds as good as any previous generation iPod with high bit rate files (all my music is 192 or higher).
Now, as far as capacity, I want as big as I can get. In the past, I've used my iPods for portable file storage as well as music. Specifically, I love the iPod camera adapter. I can load my RAW files from the DSLR in the field, and keep my card sizes and numbers reasonable. With a 32GB iPhone with file management capabilities and the adapter compatibility (c'mon SDK!!!), I could do an entire 3 or 4 day shoot, transfer files to my iPhone, and then email them to the people who need them with ONE DEVICE. OMG, that just sounds too good to be true. I mean, to me, we're talking about Star Trek device excited!!!