Intel officially launched the new Core 2 Quad, aka QX6850, the new high-end desktop CPU based on Core architecture.
This processor is now featuring specifications almost identical to the current Quad Core Xeon: FSB 1333MHz, 3.0GHz core frequency. The Xeon can be installed in pairs thanks to Intel dual CPU motherboard (used in the Mac Pro) which is not available for the Conroe yet.
Apple will need Intel to speed up the evolution of the current Xeon for being able to offer the expected high-end power crunching Mac Pro in a near future. In addition the price of the fastest Xeon is significantly higher than the equivalent Conroe. One would need Intel to release a 3.4 GHz Xeon running on a 1600MHz FSB to maintain the gap between server and desktop CPU. Indeed, why paying premium price for a Xeon-based hardware if a Conroe-based hardware might be faster, Apple has probably looked further in Intel roadmaps.
For the time being, Mac Pro based on Dual Dual Core Xeon (original and entry model) will not