I don't necessarily see the need for the front facing camera or the HD recording (cell phone cameras aren't going to produce good recordings regardless), but I wouldn't be opposed to those improvements, either.
A higher resolution would be nice, but more importantly, bettery battery life. It would be nice if they included the extended battery instead of the stock one.
Also, I'd love to see the Menu, Home, Back, and Search buttons become hardware buttons, with a directional pad in the middle of them. That's one thing I really miss from my Treo. Hardware buttons would be harder to accidentally hit while typing, would give the phone a more professional feel, and wouldn't necessarily call for a taller phone if the buttons were sized right.