I've blogged about this before here and here, but it's definitely good news that Scott Guthrie has announced that
VS 2005 Web Application Project V1.0 has been released.
Having now worked extensively with the "Whidbey" web project model, I'm glad that this alternative is available and supported. I have a feeling that the Web Application Project model is actually going to be the more used - at least amongst the professional development community - as it provides much more control over the structure of your project.
As always, this is my 2p and your mileage may vary.