The 2006 model remained is still the MacBook and costs $1000, while the unibody one was renamed to MacBook Pro, given a better battery, a card reader and a firewire port and costs 1200 (specs nearly identical to white one, except it's about 130 MHz faster).
I'd be careful about calling the battery "better." Sure, it has more life/charge, but for folks who carry an extra battery or two for big traveling, it's a setback for sure.
So what happens to this forum? The MacBook Pro forum is going to get really busy.
Most definitely. Also, does this mean that the new unibody MBP's hard drive and memory aren't user-replaceable? I'm assuming so, but haven't found a definitive answer yet.