There are rumars circulatng that Apple is working on the iPhone 2.1 Firmware already and are focusing on enhancing the GPS funtionaly of turn-by-turn navigation. "Specifically, the core location functions will be able to track what direction you're moving, and how fast. Also worth noting is that iPhone SDK 2.1 is also seeding to beta testers, but cannot be used with the app store." There is not news specifically weather or not it will be available for the first generation of iPhones with out the 3g campaility.

Source : Gizmodo