It's here. Google Street View and over the air Podcast downloads from iTunes. Yup, public transit and walking directions too and the ability to share your location via email. Bug fixes, Safari enhancements, the ability to toggle auto-text correction, and plenty more... just like we heard in the pre-rumor run-up. Now get outta here, your iTunes update awaits.
Update: Added some screenshots of the most notable new features after the break. The Street View implementation seems solid though we miss the compass feature found on T-Mobile's G1. Also, the real-estate saved by moving the Google search field next to the URL field in Mobile Safari is a welcome and obvious change. As to auto-correction, well, that's personal taste. Tipster Vizcaya also noticed that Apple added a new option to rate an App when you delete it from your phone. You can also view multiple screenshots of applications available in the App Store.
Update 2: The other big update, Podcast downloads, works just as you'd hope and should further promote the spontaneous isolation we all crave. A few shots of that added after the break.