Yes, the 4th generation of mobile phones as they name it, will be the ultimate entertainment device ever. (They say)
So.. You can imagine a mobile phone + mp3 player + TV + megapixel digital camera in a compact device.
I think it'll be great
There are already multiple models of mobile phone with 2 megapixel camera. (not that recommended for prints, but nice to view on your new HDTV(!) )
...And about WiFi, on 3GSM there was a new technology called WiMAX... A lot faster than WiFi and way more 'global'. So you can expect Internet Connection offers from your ISP 'on air'...