So looks like we can confirm that the Gizmodo exclusive prototype iPhone that was lost in a bar in California is indeed the next model iPhone to sweep the world.

Main new features of the updated iPhone

• Brand new design: A forged stainless steel band sandwiched between two sides of engineered aluminosilicate glass makes for an incredibly thin, refined design. At 9.3 mm thin, it makes it the world’s thinnest smartphone.
• FaceTime: A front facing camera for video calling that you can switch to rear facing to show your caller what you are seeing.
• 5MP Camera: 5 mega pixel camera with LED Flash (up from 3MP on the 3GS)
• Retina Display: The highest resolution screen in a mobile device 960×640-pixel resolution at 326 ppi
• HD Video: 720p HD video recording and the ability to edit those clips with the new iMovie App featuring Apple-designed themes, titles and transitions. iMovie App release date TBA.
• Built-in three-axis gyroscope: Capable of advanced motion sensing such as user acceleration, angular velocity, and rotation rate.

New features coming out in the latest iOS4

• Folders for Apps: A fabulous way to group similar apps into a single folder allowing you to have up to 2,160 apps on your phone!
• Multi-tasking: Finally the ability to seamlessly switch between running apps without having to close them down and return to the home screen.
• 5x Digital Zoom: To get closer to the action.
• iBooks: The Store that was introduced with the iPad now syncs to your iPhone.
• Home screen wallpaper: Customise the look of your home screen with your own graphic or photo.
• Wireless keyboard support: Ease of writing long amounts of text by pairing a Bluetooth enabled Keyboard to your iPhone.

See the full list of new features coming with the release of the iOS4 here.

Apple iPhone 4 Design Video

Other iPhone 4 links of interest

• Official Apple iPhone Website
• See a great side by side comparison of the iPhone 4 vs iPhone 3GS here.
• Nice comparison chart for iPhone 4 vs. HTC Evo vs. Droid Incredible.
• Review by Mark Webster on nzherald.co.nz