No, with SDK 3.0 and a new Iphone 3G S you can actually capture movies using the provide APIs.
You are restricted to 10 minutes video.
In the UIImagePickerControllerDelegate, you can now find UIImagePickerControllerMediaType.
This specifies the media type selected by the user. The value is an NSString object containing a type code such as kUTTypeImage or kUTTypeMovie.
This method has been added:
imagePickerController:didFinishPickingMediaWithInfo:
Tells the delegate that the user picked an image or movie. This method is optional.
- (void)imagePickerController:(UIImagePickerController *)picker didFinishPickingMediaWithInfo:(NSDictionary *)info
Parameters
picker
The controller object managing the image picker interface.
info
A dictionary containing the original image and the edited image, if an image was picked; or a filesystem URL for the movie, if a movie was picked. The dictionary also contains any relevant editing information. The keys for this dictionary are listed in “Editing information keys.”
Discussion
Your delegate object’s implementation of this method should pass the specified media on to any custom code that needs it and then dismiss the picker view.
When editing is enabled, the picker view presents the user with a preview of the currently selected image or movie along with controls for modifying it. (This behavior is managed by the picker view prior to calling this method.) If the user modifies the image or movie, the editing information is available in the info parameter. The original image is also returned in the info parameter.
Maximum movie duration is 10 minutes. If a user picks a movie that is longer in duration than 10 minutes, they are forced to trim it before saving it.
Implementation of this method is optional, but expected.
Availability
Available in iPhone OS 3.0b and later.