The new iPhone has arsenic-free glass, BFR-free, mercury-free LCD, PVC-free system, 23% smaller packaging. Smaller packaging also affects CO2 emissions - it means they can ship millions around the world using less space.
They've also apparently improved the battery life. Now you'll get 9hrs of Internet on Wi-Fi, 10 hours of video, 30 hours of audio, 12 hours of 2G talk time and 5 hours of 3G talk time.
Battery life kind of irritates me the most with phones. They have the technology from the get-go to make the battery better. The technology exists. But instead they slowly roll out better and better batteries so they can sell more -- the battery life being a selling point.

Elli A. says:
They can make battery life longer by using a bigger battery, but then the phone becomes bigger and heavier.
Other than that, they currently use lithium ion, which is one of the best consumer batteries you can buy today in terms of energy density.
Zoey L. says:
Thanks for the primer on lithium ion, Elli A. I agree with Jordana G. that they didn't suddenly just come up with a battery for the 3gs that has a much longer life than previous batteries. This is a calculated, capitalistic move. Which I understand, it just doesn't help the planet out any.