[SalTheWop]

The 3GS has a faster CPU and more RAM . It also has a built in compass.Very handy Im sure .
Web pages supposedly load faster.From what I have seen the difference is noticable but still only a matter of seconds.I do sometimes wish it would load web pages a bit quicker, but its not SLOW, even on graphics heavy pages.
WRT the camera , as far as I know it is hardware.Neither the 2.0MP or the 3.2 is going to be as good as even a dedicated camera of the same size.I use the camera for snapshots and its fine.The video recorder on the 3GS looks good,you can easily upload to Youtube, and I imagine you can get them off the phone easy enough.With the earlier model you have to SSH into the phone to get the video off, which is fine if you are into all of that, but if you just want an easy life the 3GS is the way to go (if video is that important to you).
Personally if I could get a 3G cheaply 2nd hand then I would .If buying new I would go for the 3GS.


Regarding the "sat nav" already on the phone I assume you mean Google Maps?? It isnt turn by turn navigation. I used it once, I kept losing signal,it took forever to update,so I missed loads of turns.It took me 3 times as long to get to my destination as it should have done. AND it uses data, so OK in this country,not so good abroad.