It was announced toward the middle of summer that is was coming and as of August 29th-ish, it is here. I have been using it for a couple of days and have enjoyed it so far. Also, the contacts that I have accumulated all these years in Hotmail are now on my iPhone.
For those of you looking into how to accomplish this, here are some simple configuration entries. (On the iPhone, set this up as an Exchange account)
|Username||(Full email address)|
|Certificate||Accept if prompted|
|Mail, Contacts, Calendar||All can enabled|
You could setup Hotmail before as a Mail account, but it would not synch. So, I had to double delete email and it would not synch over contacts either.