UPDATE 3: As pointed out in the comments, there's no sign of ad support in Google Maps Navigation (at least not yet). It's just free as in free. UPDATE 2: According to Gizmodo, Google:

implied they are working closely with Apple now on [Google Maps Navigation].

iPhone 2.2 saw Google Street View, could iPhone 3.2 see Google Maps Navigation? Let the drooling begin!

UPDATE 1: Replaced video with official version, moved TechCrunch preview below the fold. Enjoy both!

ORIGINAL: Just a few hours ago TiPb posted about the rumors surrounding a free (with ad support, of course) Google Navigation app, and now TechCrunch has the goods -- it's real, and it's (so far) exclusive to Android 2.0. And we quote:

  • Search in plain English. No need to know the address. You can type a business name (e.g. “starbucks”) or even a kind of a business (e.g. “thai restaurant”), just like you would on Google.

  • Search by voice. Speak your destination instead of typing (English only): “Navigate to the de Young Museum in San Francisco”.

  • Traffic view. An on-screen indicator glows green, yellow, or red based on the current traffic conditions along your route. A single touch on the indicator toggles a traffic view that shows the traffic ahead.

  • Search along route. Search for any kind of business along your route, or turn on popular layers such as gas stations, restaurants, or parking.

  • Satellite view. View your route overlaid on 3D satellite views with Google’s high-resolution aerial imagery.

  • Street View. Visualize turns overlaid on Google’s Street View imagery. Navigation automatically switches to Street View as you approach your destination.

  • Car dock mode. For certain devices, placing your phone in a car dock activates a special mode that makes it easy to use your device at arm’s length.

To quote our own editor-in-chief, it looks "bad@$$", and so far it also looks exclusive to the US, and to Android 2.0, at least for now. But come on Google, you want to give it to everyone outside the US too, right?