The headline says it all except the pricing and availability. Pricing: $399.00 US for the 8GB (same as it ever was) and $499.00 US for the 16GB model.
Wait? What? Wasn't there, like, this big conference not too long ago where you could make announcements about new iPhones? Oh yea, there was, I was there. Guess doubling the amount of available storage on an iPhone isn't worth Steve's precious keynote time, (but jiggly mode is?). Anyway, it's good news nonetheless.
...Since I'm currently rocking one of the classic 4GB models, that 16GB model is mighty tempting. The only question left: will they drop the price on me two weeks after I finally buy it?
(Oh, and the Touch now comes in 8, 16, and 32 gig varieties!)