In this blog entry posted by the Google Mobile team, they are suggesting more "location" based features will be available for iPhone starting this month. The exact quote says:
"Gears for Windows Mobile and Android already contain location APIs and we expect to see an explosion of mobile applications that use location technology, particularly on the iPhone starting this month."
With millions of 3G iPhone speculations for next week's WWDC event, this one is hinted by the Google Mobile team. If anything, one can expect iPhone firmware 2.0 to have more upgrades to the Google Maps application; I wouldn't be surprised if yesterday's Public Transit feature from version 2.2 will make it to iPhone firmware 2.0.