Here's the video of that button working:
http://www.youtube.com/watch?v=KWqD2bKff_k&feature=player_embedded
They didn't mention a lot of things...
-GPS on the 3G model
-VGA out (but it was off hand mentioned by Phil)
-Bluetooth keyboard support
-VoiceOver/Zoom (Accessibility) [I want my email read to me]
Also, where are the Stocks, Weather, Voice Memos and the frickin' Calculator apps?