Engadget got the lowdown on Apple's newest competitor on the AT&T network. The specs aren't too special and the processor is a bit last generation, but it does mark the first direct carrier competition between Google and Apple. Due in August, it will have a special AT&T'ed up version of Android on it, which of course, will be horrific.
You'll be able to throw a non-AT&T version of Android on there once you get it home so you don't have to click thru 8 AT&T pay-ware apps to check your email.