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"The new Google Mobile App for iPhone makes it possible for you to do a Google web search using only your voice," said Dave Burke, Engineering Manager for Google's mobile team. "Just hold the phone to your ear, wait for the beep, and say what you're looking for."
In addition to allowing users to speak their search queries instead of typing them, the updated app (Free, App Store) includes an Apps Tab that allows you to reorder Google Apps to make it easier to access your favorites.
Google also said there's no longer a need to specify where you are because Google Mobile App now has Search with My Location.
"Search for 'movie showtimes' or 'Mediterranean restaurant' and you'll automatically see results based on your current location," Burke added. "For this to work, Location Services must be enabled on your iPhone and you have to opt-in to let Google Mobile App use your location."
For a bit of the history behind Google's new speak-to-search capabilities, see AppleInsider's report from last Friday.