Upgrade makes great iPhone even better

— -- In the nearly two years since the iPhone burst onto the scene, the competition for handheld computers has grown fierce.

Apple crushes all comers when it comes to third-party applications — the iPhone App Store has 50,000-plus applications and counting, all the more remarkable because it just opened in July. But though the iPhone broke ground with visual voice mail, smart sensors, multitouch display, true-to-life Web browser and more, it was a laggard in other respects. You couldn't record video, dial by voice (without a third-party app), send MMS messages, copy and paste text, or easily search across the device.

I've been testing the latest software on a 3G S device for over a week now, and the changes make an already marvelous device that much better. Not everyone should feel the need to splurge on the latest phone, however, especially if you have to pay full price — the 3.0 software adds a lot of rich features by itself. But you'll appreciate the extra storage on the 32-gigabyte 3G S, and you'll have to upgrade if you want the video camera, voice controls and a new screen reader that describes what's on the device for those who are visually impaired.

The new phone, which comes in black or white, looks virtually identical to its slim and stunning predecessors. But it is snappier (YouTube videos appear without delay) and has a longer-life battery (thankfully) and an improved camera. A new coating makes it less prone to fingerprints. There's a compass to keep you pointed in the right direction.

There are drawbacks. My experience with the new voice-controls feature that lets you make a call or control music on the 3G S by speaking into it wasn't perfect, especially in noisy environments. The battery on the new phone remains sealed, so you can't carry a spare. It still doesn't multitask quite like new rival Palm Pre.