Sure looks like it..
http://gizmodo.com/5520164/this-is-apples-next-iphone
What's new
Front-facing video chat camera
Improved regular back-camera (the lens is quite noticeably larger than the iPhone 3GS)
Camera flash
Micro-SIM instead of standard SIM (like the iPad)
Improved display. It's unclear if it's the 960x640 display thrown around beforeit certainly looks like it, with the "Connect to iTunes" screen displaying much higher resolution than on a 3GS.
What looks to be a secondary mic for noise cancellation, at the top, next to the headphone jack
Split buttons for volume
Power, mute, and volume buttons are all metallic
