This time the rumor says the next gen iPhone will include a 5MP camera and according to macrumors the iPhone will be able to record 720p Videos. iPhone 4 Beta SDK reveals the ability to capture video at higher resolutions than the current standard 640×480 (“VGA”) resolution. The values AVCaptureSessionPreset640x480 and AVCaptureSessionPreset1280x720, mean that we can record 1280×720 videos. So will the next gen iPhone will be called iPhone HD?

Source [macrumors]