It looks like the iPod/iPhone 1.1.2 upgrade did more for the platform that close security holes and add some international features. Gearlive is reporting that the iPhone got a modest upgrade in speed as well. While the 3% upgrade in speed is modest, it does indicate that Apple has the ability to upgrade the speed of the device based on what applications are being used. For instance, if Apple needed some more horsepower for a video chat application in the future, it could crank the iPhone's CPU up to 500Mhz. Reportedly, the Samsung ARM Chip inside the iPhone can be safely brought up to 624Mhz.
The downside to raising the speed of the chip is raising the operating temperature of the iPhone as well as
