Canon has just announced the EOS Digital Rebel XT (aka 350D in Europe and KISS Digital 2E in Japan). It now has 8.0 megapixels in the same 1.6x crop factor. Just to dispel any rumors, the CMOS chip in the Rebel XT is actually a tad smaller (0.2mm) than the one used in the 20D, and is 8.0 megapixels not 8.2.
Shooting speed has been increased to 3fps with a 14 shot burst (JPEG) or 5 shot (RAW). The camera body itself is considerablyl lighter (130g) and smaller in all dimensions.
Interestingly, Canon is not using the same BP-511 batteries that they had in the 10D/20D and original Digital Rebel. You now have to use NB-2LH batteries, which are used in some of their point and shoot digitals. Canon says this was to reduce the size/weight of the 350D. My guess is that they also want to separate the consumer digital SLR line (Rebels) from the prosumer line (20D). Many of my friends have a 10D or 20D as their main camera and a Digital Rebel as a backup. Since they used the same lens, battery, and CF cards, it's a nice system. Having the Rebel XT using different batteries complicates this.
For more info, I updated my Canon Digital page a bit with new info, but the best site right now is DP review:
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