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Google plans to bring features like the live widgets, and 3D homescreen interface from Android 3.0 to smartphones.
From what was previewed, it looks like emphasis will be made on Near Feild Communication (NFC) with this update. While NFC was made available in Android 2.3, Google has big plans for NFC in Ice Cream Sandwich. NFC will allow Android users to share information between devices, like contacts, web pages or pictures by simply placing two devices against each other.
The NFC APIs will allow developers to add NFC functionality to their apps. Google demonstrated sharing notes and video calling using NFC. Gaming will also greatly befit from NFC as it was demonstrated in a gamer's favorite Fruit Ninja.
The NFC technology is used in Europe as a means to replace carrying your credit cards around. It allows you to make payments and even carry transport passes on your mobile device. It is would be interesting to see if NFC evolves to do the same in the U.S. in time.