Everyone seems to be glazing over the fine print at the bottom.
Via
http://web.archive.org/web/20070710....com/macosx/leopard/features/timemachine.html
This is why many of us bought Airport Extreme Base Stations, and this is why many of us bought Leopard.
Rumors?? Are you kiddin me??

That was on Apple site!!! They say its supported, and AirDisk is suppose to work. Call me cheap but I spent 170 for AEBS and 250 for HD and I expect it to work as advertised
Thanks for proving my point with evidence. The cached page clearly reads: "All features referenced in the Mac OS X Leopard website are subject to change."
As
Val-kyrie pointed out before me but I am going to reiterate, having just read the thread from start to finish, the original Apple page describing the feature had a disclaimer on it saying features were subject to change. A few things went missing after all, like the hologram iChat effect.
All features referenced in the Mac OS X Leopard website are subject to change.
Now whether or not Apple suddenly saw the potential to introduce Time Capsule then and changed the specification because of that we'll never know. But the fact remains that they saw there were issues in developer testing and they withdrew the feature as they were perfectly entitled to do because they knew it wasn't working properly.
You can whine and moan about it all you like, the feature was subject to change and did change.
Moving on, I would hope (because I am in much the same boat as many of you here) that Apple will release a firmware update for existing AEBS(n) owners that addresses some of the issues. They don't need to go so far as to implement support for Time Machine as they need to fix read/write issues users are having. Fixing those issues will have the same effect, allowing you to use Time Machine properly.
In my case I did the Terminal Time Machine "hack" back in November and haven't had any problems with backing up, browsing my files and even restoring files since. Two computers in my house use that method and it's all smooth sailing so far, touch wood.
I greet this new release with some questions, of which most of you probably can't answer as the product isn't shipping yet, so no one knows. But I am going to outline them below anyway, some may be more like views.
Firstly, the storage being internal and probably SATA as oppose to external and through USB. I was told last night this would mean that the transfer rates should be faster as the USB bottleneck is gone. If anyone knows any better I'd love to know, but I do believe that would be true and I'm hoping transfer rates will be much faster than previously (however, note there are no bench marks on the site and Apple really likes giving them normally, so what's the reason behind their disappearance) ?
Still relating to data transfer, the device can operate as just a file server, without connecting you to the internet or joining another existing network if set up properly; so then wouldn't you think data transfer rates over ethernet should be really speedy ? If you think about it, assuming the bottleneck was USB, your going gigabit ethernet from your computer, into the device's gigabit port, and then to the SATA controller which is at 3.0GBps right ? Pretty speedy. I know that's not wireless, but wouldn't that then be one of the faster external drives on the market, as surely you don't need to use it wirelessly ? Think about it anyway.
I think that's all I've got actually, but if something more comes to me I'll be sure to post my views here. Feel free to point out any flaws in my reasoning for the above points. Remember, it's not released yet, so you don't know there wont be firmware updates for exiting AEBS(n)'s and until there are actual benchmarks, no one really knows if this is actually any better than what you can already get.