I bet we see Steve come out to introduce this. MobileMe is becoming Apple's own long due Facebook competitor. This is potentially huge for Apple.
With an installed base of over 160 million iOS devices, they're going to get a real nice head start. Facebook is at 300 million.
If Apple makes Me.com a free service for every iOS user, then they're not only going to instantly compete at the level of Facebook but they're going to totally murder BBM. Everybody's going to want an iPhone so that they can become a member of Apple's social network.
I expect Apple to re-brand it to simply me.com. I mean, what is Facebook all about? It's your "Me" online. That's the best social network URL right there.
Wow...you certainly do live in the cloud...
Face it. Me.com will continue to be full of sucks features which Apple think are magical (e.g sharing photos with friends).