I'm using Google Voice now for two weeks, after I was lucky enough to score an invitation. It is an amazing service and not because it allows free calls within the U.S. It allows you to select a phone number and manage it yourself, with forwarding to different landlines or mobiles, voice mail, greetings by contact groups or individual contacts and much more. Many more features I haven't had a chance to try, but I've started distributing my Google phone rather than my cell number.
The basic functionality of Google Voice is the callback: you select a phone number on the website and it calls you back on any phone, connecting to the number you called. The called person would see the Google phone number as caller ID, which avoids disclosing the direct phone numbers. This also works through a mobile version of the website.
However, on the iPhone, the webapp is much less convenient than the built in phone. I probably would use it for international calls, where Google Voice rates are much cheaper than the fantasy rates AT&T charges. But in most cases I'd go through the built-in phone app with its convenient access via address book or voice dial and live with the fact that my cell phone number shows up in the called phone rather than the Google Voice number.
This all would be different with a native app for Google Voice, but Apple doesn't like this. AT&T probably neither, even though Google Voice requires the same amount of airtime than direct calls. It does allow SMS sending and receiving for free, but AT&T cannot believe in all seriousness that they can forever charge up to 64 cents per kilobyte for text and at the same time provide unlimited broadband on the same device.
From Apple's point of view it is a short-sighted move not to support apps like Google Voice - it hands an immediate selling point to Blackberry and Android devices. From AT&T's perspective it's understandable, but in the end it never pays off working against your customers wishes, just to artificially protect your business model.
So I hope this is only a temporary hiccup and all parties come to the conclusion that it's better to embrace innovation than to fight it.