After the onslaught by nikon with their D80, Canon finally launch their retaliation. The replacement of the 350d came in the form of Canon EOS-400D. Some of the interesting feature are:
10.2 MP CMOS sensor (APS-C size, 1.6x crop factor)
Integrated Cleaning System - (ala olympus style high frequency dust cleaner for the CCD)
2.5″ LCD display (no 2nd LCD info display) with proximity sensor to disable the LCD display when focusing using viewfinder. this is inline with other new DSLR like olympus e-500 / Konica minolta Dynax 5D and also Sony Alpha 100 which only has a single LCD display
9 Area AF point (ala 30D style)
Picture Style (available on 30D also)
3 FPS Continuous shooting buffer up to 27 JPEG and 10 RAW images
pictures courtesy of DPreview


other new launches from canon includes the
70-200 F4L with IS / USM - this will be high on my wishlist, the new gen. IS can be step down up to 4 stop difference. eg. a 1/250 handheldshots can be done at 1/15
Canon EF 50mm F1.2L - the price is around USD 1.6k
more info here