The latest rumor is that the hotspot feature will be coming to all iPhones with version 4.3 of iOS. It remains to be seen how this will play out with ATT - cost extra (like tethering) or lumped in with the base data package (like VZ)?

One thing's for sure, ATT is going to lose customers with VZ getting the iPhone. There's no reason to believe that Verizon will not push many more iPhones than ATT ever has. It's already been observed by multiple people that prior to the recent announcement, many consumers were making choices between iPhone and Verizon, not iPhone and some other phone. The runway is now clear, they can have their cake and eat it too.

This talk of iOS 4.3 left me pretty confident that we're also not going to see an untethered jailbreak for 4.2.1 on new devices. I suppose the writing's already been on the wall for over a month on that one though.