YouTube video courtesy of Google

If there was any doubt that Google is taking direct aim at the iPhone, wonder no more...

Announcing Google Maps Navigation for Android 2.0

Google Maps Navigation aims at one of the few iPhone app categories that can command truly premium prices. Navigon's MobileNavigator for the iPhone is priced at $89.99. TomTom is $99.99. Google's turn-by-turn app for Android 2.0 is free. There is one huge difference between the iPhone's premium navigation apps an Google's though: Navigon and TomTom's apps load their map libraries on the iPhone. This means you still have maps available when you are out of AT&T's EDGE/3G network. Google's app requires access to Verizon's network to get that data. Still, this is probably just fine for 90% of users. And, it could be just the kind of killer app to draw customers away from the iPhone.