From Apple's site, here are the new SDK features and improvements.

In App Purchase

Allow users to purchase content or services from your application using the Store Kit framework. This new framework handles the financial aspects of the transaction, processes payment with the iTunes Store, and provides your application with information about the purchase.

Wired is reporting that the iPhone 2.2 firmward will include podcast (audio and video) download over 3G (previously only available thru syncing, either wired or thru .Mobile) and some updates to App Store. 

http://blog.wired.com/gadgets/2008/11/iphone-22-to-ge.html

Apple has seeded iPhone 2.2 Firmware Beta 2 and has enabled google maps street view.  Also included in this beta is line-in audio accessory support.

We have decided to drop the non-disclosure agreement (NDA) for released iPhone software.

At the Flash On The Beach (FOTB) conference in Brighton, Sr. Director of Engineering at Adobe Systems Paul Betlem, confirmed that Adobe is indeed developing a Flash Player for the iPhone. However, Apple calls the shots as to when it'll be available.

More details here.

Registered developers have been given access to an iPhone 2.2 beta or preview.  As seen here, Safari is receiving a bit of love.  There is now a search text edit box and a page refresh at the top.

There is no sign of Cut and Paste.  Cut and paste has been getting a lot of press resently, I'd guess that Apple will do something about it eventually, but not in 2.2. 

Apple is now giving free access to the iPhone Developer Program.  The program is available to accredited, higher education institutions in the U.S. and allows universities an avenue to provide official courses that do not violate Apple's iPhone SDK non-disclosure agreement.   Stanford has announced a new class this fall titled "iPhone Application Programming."  You can safely assume other schools will follow.

 Man, what a great story on the power of a pretty decent SDK and a built-in distro/advertising channel (even with the  Apple commission). This guy wrote Trism by himself and has made $250k in the last two months.  

Apple posted OS X 10.5.5 update.  Looking at the release notes there are a few improvements targeting the iPhone, including:

• Improves iPhone sync reliability with iCal and Address Book.
• Improved Wiki, Blog and Podcast compatibility with Safari and iTunes on iPhone and iPod Touch.
• Time Machine can now back up iPhone backups that are on your Mac, as well as other items in (~/Library/Application Support).

Links to the release notes: