Although Apple claimed that the 3rd edition of the iPhone OS comes with over 100 new features, there are some limitations if you are using iPhone 2G or iPhone 3G.
Here's a nice summary of the differences between the versions:
No reason for me to switch to iPhone 3GS. I'm so impressed with my current iPhone (3G) that I find it enough, for now, especially after I'll upgrade to the newer OS and have all the newer games working...
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