Phew. Busy day of updates if you're an Apple fan(atic).
Cards (also free in the App Store, also requires iOS5) is available for download.
Cards lets you create a postcard from your own photos and text, using Apple's provided templates, which Apple then mails out for you. With a custom designed stamp from Apple, naturally. All for $4.99 per card.
The cards look beautiful, as you would suspect from Apple. But it is a funny app/service to release when everything else Apple is doing is pushing people away from real items into digital.