Screenshots point to digital compass in new iPhone,which Boy Genius Report has obtained. The debugging menu shows the option “Show in Compass” this is rumored to be on the Next firmware upgrade (3.0 Firmeware) release.  So it keeps getting more intresting day by day.

The most  interesting things can be done with the digital compass is introduce augmented reality-type applications, as . Mobile augmented reality can use a phone’s camera & compass togeather, for example you can snap Times Square & utilize the Compass so it shows  names of locations to pop up on top of the image!