Yes, the 4-inch iPhone SE supports most of Apple's new technologies and features, including Live Photos, Apple Pay and more. It does not support 3D Touch, but it does include most of the same hardware found on the iPhone 6s and 6s Plus models. This includes a 12MP iSight camera with 4K video, Touch ID, and A9 processor. It also supports all the new features in iOS 9.3, such as Night Shift mode.
The iPhone SE is Apple's replacement of the iPhone 5s for people who prefer smaller smartphones. Apple sold over 30 million iPhone 5s models last year, making the 4-inch model a popular choice among Apple's customers. The iPhone SE includes a lot of the latest features found on both the iPhone 6s and 6s Plus, but it does not include 3D Touch. It also has a lower resolution Retina display (1136x640 at 326 ppi) due to its smaller 4-inch design.
The iPhone SE does not support Apple's stylus, the Apple Pencil. No iPhone models support the stylus at this time. The Apple Pencil only works with the 12.9- and 9.7-inch iPad Pro models. It is unknown if any future iPhone models will support the stylus, but if they do, support will most likely be introduced to Apple's larger sized models, such as the iPhone 7 Plus. The Apple Pencil is available for $99 on apple.com.
Yes, the iPhone SE is equipped with a 12-megapixel iSight camera with 4K recording capabilities (3840 by 2160) at 30 fps . It also includes all of Apple's latest camera technology, except optical image stabilization. This includes the ability to shoot 64-megapixel Panorama photos, Live Photos support, improved local tone mapping and noise reduction, plus Slo-mo video support for 1080p at 120 fps and 720p at 240 fps. Other video recording capabilities include 1080p HD video recording
The iPhone SE does not feature optical image stabilization. OIS is only found on the iPhone Plus models (iPhone 6 Plus, iPhone 6s Plus). The iPhone SE does, however, feature the same 12MP iSight camera found on the iPhone 6s and 6s Plus. It also includes Apple Pay support, 4K HD video recording capabilities, and all of Apple's latest camera technology.