I had a feeling this was gonna happen!

 The rumors are true. Canon’s took power features from the high-end EOS models and creature comforts from the PowerShot line, and merged them into the 12.2-megapixel EOS Rebel XSi DSLR, with Live View LCD view-finding (previously only seen on EOS-1D Mark III and 40D), a 3″ LCD screen with 230,000 pixels, and the Digic III processor found in nearly every new Canon model. There will be two kits, body only for $800 and one with a starter 18-55mm lens for $900. Jump for full details and more pics.

The rest of the specs are over at Gizmodo.

Here’s a list of some of the changes over at DP Review.