Ringer Profiles for iPhone
Your iPhone would know you’re inside a movie theatre and would automatically set it to “Movie” mode. It’d know when you’re home. When you’re in the office, and when you’re at your second girlfriends house where it would not show a preview of any new text messages (hehe).
The built-in GPS could turn on Airplane Mode when you enter an airport. It could change your roaming and data settings when you’re in a country other than your own. It could even use GPS in combination with the built-in sensors to determine if you’re moving (i.e. on a playing soccer, dancing, or going for a jog.
Together with a Services menu and a new notification system, that’s what I hope to see in iOS 5.