That's not the only change in store for iTunes. The service will also now have multiple pricing brackets, which apparently will be in the hands of the content providers, rather than Apple, to choose. To start there will be a lower cost 69-cent tier and a higher cost $1.29 tier. Somehow I doubt that many vendors will go with the lower price, so many might see this as just a price hike compared to their traditional 99-cent per song costs.
The biggest downside of all, though, is that to “upgrade” music already purchased, you have to pay the 30-cent difference between the original cost and the new $1.29 cost. That probably won't go over well with people who have massive media collections already, but no matter what anyone says it's a step in the right direction. Last but not least, iPhone users will be happy to know that they can now access the iTunes music store over the 3G network, not just Wi-Fi.