What does Jon Favreau have in mind for Iron Man 3 if he ends up directing it?

Well, Collider has some details:

Director Jon Favreau is already looking ahead to Iron Man 3 even though he admits he has no idea what it will look like until after the events of Thor, Captain America: The First Avenger, and The Avengers. However, he told MTV that he would still like to have Iron Man's arch-nemesis The Mandarin be the film’s villain. For those unfamiliar with the character, he’s a Fu-Manchu-looking Asian caricature who possesses ten magical rings. Favreau admits that the character from the comics will require some alterations, but he’s been setting up Mandarin’s presence in the last two films. The terrorist organization in the first Iron Man is part of the “Ten Rings” and if you look through the credits of Iron Man 2, you’ll see Ali Khan credited as “10 Rings Gangster” (he’s the one who hands Vanko the forged ID and travel documents).

I like that Favreau’s willing to say “I don’t know” at this point and it should now be clear that he’s taking the time to make Cowboys and Aliens (which comes out next summer) so that the Marvel Universe can simmer before jumping into a third Iron Man movie without knowing how Tony Stark is going to fare during and after The Avengers.

-A lot will depend on who the hire to write it, if it even happens...thoughts