The 12th Wonder of the iPhone will be YouTube.
YouTube has been going crazy converting all their video to the H.264 codec. The iPhone supports H.264, as do iPods. That's why our theory has been, since Steve Jobs announced YouTube support for AppleTV at the D conference, that iPhones will get it as well. Another source corroborates this theory.
Of course, Google claims doing all that work just so AppleTV owners can watch YouTube...which seems like a lot of global warming for such a small install base, especially when compared to the bajillions of online users watching YouTube in Flash. Since Google Maps integration is already the premier offering of the iPhone, Apple is clearly comfortable with the prospect of promoting Google properties on the Jesus Phone.
Oh, and a quasi-reliable source says so, too. They also added that Apple will make it look better than my lame Photoshop, but EDGE will make it suck again.
More WWDC Speculation... [9to5mac]