As TechCrunch suggested earlier in the week, Twitter announced a few new features today: improved search on hashtags and usernames, and a Twitter-branded image/video sharing service that may disrupt established players like TwitPic and yFrog (the back end for Twitter's service is provided by PhotoBucket). The photo service will be live in the next few weeks.
This upgraded suite of capabilities lines up nicely with the other TechCrunch tidbit from yesterday, suggesting that part of the image service's mission is to integrate with iOS 5. iPhone users would presumably gain a 'Send to Twitter' button in any image-enabled application, although there are hints that this might go quite a bit further. If it's part of a larger plan for shared services on iDevices, that could dramatically improve the multi-app experience for people working with different sorts of data; Richard points to this Chris Clark post from a year ago with some ideas about how that might work.
Twitter's lovely little video, below.