The next iPhone software update is coming this week.

Many speculators claim that the coming update will be the 1.1.1 firmware which was (inadvertently?) hinted by Apple at their debut of the iPhone in the UK on the O2 network.

Here is what the iPhone will get:

• iTunes Wi-Fi Music Store
• Customizable Home button

These are features that are probably coming, but might not show up this week. These will most likely be timed with the release of Leopard in October.

• iChat
• MobileFinder
• Disk Mode
• Clipboard
• Keynote presentation player
• Flash support in MobileSafari
• enhancements to Mail
• Phone to phone wireless photo sharing
• File sharing over Wi-Fi via BonJour
• .Mac syncing
• software image stabilization in the camera

The iPhone will not get these features until a future hardware revision:

• GPS
• Connectivity to AT&T’s faster 3G network

Shout-out goes to Mike Cane for regurgitating the iPhone Death Star update.