The new OS will allow you organize your iPhone apps in folders for easy access. These folders can also be placed in the dock, making organization a lot easier.
If you drag one app icon onto another, a new folder is automatically created. The folder is automatically given a name based on the App Store category of that app, such as "Games," which the user can easily rename.
Using folders, users can now organize and access more 2,000 apps on their iPhone. Users can also create and manage iPhone folders on their Mac or PC using iTunes 9.2, according to Apple.
In today's announcement, Jobs also touted the new Game Center, which would be an Xbox Live or PSN of the iPhone community.
The functionality will allow developers to tap into a centralized network where gamers can play against each other. Apple says the functionality will be available later this year.