Apple has released the previously leaked iPhone update 1.1.3.

The update includes the new Google Maps with Locations which has the ability to triangulate your position using cellphone towers without GPS. It's the best way to figure out which part of town you're in and where the nearest taqueria is.

The update also adds the "jiggle" application icon Home Screen customization. (say that three times fast.) You hold your finger on an application until the all the icons on the Home Screen jiggle. You can then drag any application anywhere on the Home Screen, even to the dock. You can also create additional Home Screens by dragging the icon to the right.
The multiple Home Screen enhancement is crucial for the upcoming iPhone SDK release in February which allows third-party developers to create native software for the iPhone.

Another enhancement is the ability to create bookmark Web Clips on the the Home Screen giving you instant access to your favorite website.
And finally, you can SMS multiple contacts. That bit of news got a huge cheer during the keynote.
iPhone update 1.1.3 is available now.
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Links:
[1] http://www.apple.com/iphone/
[2] http://dl.maclife.com/0115_iphone2.m4v
[3] http://www.apple.com/quicktime/
[4] http://www.maclife.com/article/live_keynote_coverage
[5] http://www.maclife.com/article/new_macbook_air
[6] http://www.maclife.com/article/ipod_touch_updated_for_a_price