According to Cult of Mac, the upcoming next-gen iPhone could possibly use the same dual-core processor that the iPad 2 has. Yes, we're talking about the Apple's dual-core A5 processor.
This conclusion was derived from viewing the iOS 4.3 kernelcache with a hex editor [Cult of Mac article link]. Wow, if this is true, the next iPhone will be as powerful as the upcoming iPad 2! How cool is that?
It may be a bit overkill for a smartphone, but then again, there's no such thing as having *too much* processing power, right? lol