Your existing iTools stuff stays free. Only the new .mac stuff is priced at $100/year, and that allows the automatic synching of files between computers which would require a substantial amount of storage on their servers. So, the expense is justified, I guess.
It is also nice to see price reductions in iPod and iMac. The remote and case for the iPod is a great addition, and they were sensible enough to make these available for people who already own iPods. And then, to top it off, they made arrangements to get the iPod working with Windows.
And, a landscape screened 17" iMac. All up, I'm impressed.