The shake up yesterday at Apple was a huge one, the biggest in recent memory. And it's a sea change of sorts at Apple. The big change being the move from organizing the company based on a single product line such as OS X, iPhone, Mac to all product types -- Software, Design, and Hardware. Matt Drance has some really good thoughts from a former Apple employee on that.
The biggest surprise is that Scott Forstall, formerly iOS head has seemingly been forced out. John Gruber has thoughts and details on that.
In the end, this should be a good thing for Apple and users of Apple products. Having all design under one person, all software under one person, and all hardware under a single person should lead to more unified products as the three parts are forced to work together to ship a product.