There are 3 parts of the iPhone 2.0 software. Enterprise, SDK, and new features. We'll start with the Enterprise (that we saw at the last event).
Apple's started the iPhone SDK developer program 95 days ago, and had 250,000 kits downloaded, 25,000 apply to the program, and 4,000 admitted to the program.
Steve is pulling out the chair analogy. He shows a stool with three legs, Mac, Music and iPhone. (Not sure what happened to the fourth leg). He also said that after lunch, developers will get a sneak peek at Snow Leopard (10.6).