While David G. seems to have forgotten his pledge to update us on MobileMe's status late last week, following what can only be called a disasterous launch, Steve Jobs seems to have just dropped the BOOM! on MobileMe's status within Apple.
Ars Technica claims to have seen an email sent out late last night in which Jobs admits:
It was a mistake to launch MobileMe at the same time as iPhone 3G, iPhone 2.0 software and the App Store. We all had more than enough to do, and MobileMe could have been delayed without consequence.
Instead of dropping MobileMe on/around July 11th, Jobs believes a staggered approach would have been better, where features and WebApps were rolled out one by one, each with considerably more testing. Saying MobileMe was "not up to Apple's standards", Jobs also said "The vision of MobileMe is both exciting and ambitious, and we will press on to make it a service we are all proud of by the end of this year."
Eddy Cue, former VP of iTunes, adds MobileMe and AppStore to his portfolio, and now reports directly to jobs as VP of Internet Services.