Look right in the middle of the page....still 2MP. I'm puzzled why they didn't upgrade the camera too. And that they didn't upgrade to 32gb, since the iPod touch has already had that much since, what, January?
I'm surprised by the storage more than the camera. Like wildonrio has said, we've had a 32GB Touch since about January and you would think that would be easier to include in the iPhone than an entirely improved camera. Both would have been great additions though.