Google has been hinting about this new feature for a month, and then finally made it public. Gmail for domains lets you use Gmail as your domain’s mailhosting solution. A pretty cool idea, especally given Gmail’s 2.6+ Gigabytes of storage and threaded and labelled views (IMHO, a great way of organizing email).
What I currently do is mailforward all my domain email (racoma.net) to my Gmail account and use the “Send From” feature so in effect, Gmail manages my racoma.net email. I no longer have to worry about running out of email hosting space or bandwidth.
But a dedicated solution that lets you point your mail-exchange records towards the Gmail server is better. Ryderross.com has a screenshot here, and promises to put out more. I just applied as a beta tester; I hope I get approved soon so I can check it out personally.