It's hyped of course. If I want a phone to sell I'm not going to walk on stage and say don't drop it... it's going to break.The glass is a hit and miss, some people are reporting cracks from a 3 foot drop on a rug, and some people are reporting it survived a rollercoaster fall. According to Apple, it's not just glass, it's 'chemically strengthened' and 'stronger than plastic', and that's why people are making a big deal when it scratches out of nowhere. It doesn't live up to it's hyped expectations.
But then just because Steve Jobs says the glass is an improvement over the glass used in the 3GS it doesn't mean "Feel free to drop the phone guys, it's never going to break."