2:15: New iMessaging app! Like the existing Messages app on the iPhone -- only it works in iPad and iPod Touch as well. Oh, and you can start and stop conversations on different devices. This again strikes me as something you need a cloud-based backend for...
2:13: Enhancements to Game Center. More social stuff. Communication services for turn-based games built right into the OS, for easier taunting.
2:10:Your iPad can be your only device. Your iPhone can be your only device. And you can download iOS updates over the air. Again, they're just diffs now.
2:08: Next big thing: "PC Free." Untether your iOS device from the tyranny of a particular computer! This is no doubt a segue into the iCloud business they're saving for the end.
2:05: Tweaks to the Mail interface, nothing super-exciting from my viewpoint, though I do like the ability to flag messages.
2:04: Some basic photo-editing tools now available as well.
2:02: Ooh, new camera feature: shortcut on lock screen takes you straight to the camera, bypasses any password you have set, and you can take a pic with the volume up button. The best camera is the one you have at hand, and I can definitely think of many times when I missed a chance to take an interesting pic because I was fumbling to unlock the phone.
2:00: New Reminders app tells you to do something at a certain time, which, yawn, but also when you arrive at a certain place, which, wow. I.e., "Remind me to call my wife when I leave the office."
1:59: Also, genuine tabbed browsing now available on the iPad version of Safari.
1:56: Mobile Safari will now feature Reader (text-only browsing) and Read It Later (what it sounds like) -- which sounds more or less like a direct attack on the multi-platform multi-browser Instapaper service. Should be interesting to see how that works out.
1:54: Also new: as promised, deep Twitter integration. You can now tweet directly from Photos, Safari, etc. I'm a big enough Twitterer that I find this appealing, but I always wonder about tying yourself to specific services. Imagine if someone had done this with MySpace in 2005? Leaving those hooks in your OS can be an embarrassment later. Wonder if under the hood they can be easily plugged into other similar services.
1:51: Another new feature: Newsstand! Apple is really partnering up hard with the dying magazine industry, hopefully to make it not-dying. Background downloads, browse by latest issue, etc. Audio and video features maybe take us an infinitesimal way towards explaining why you'd read a paid magazine app on your iPad instead of just surfing its website.