Have the tides turned? Bloggers honored the news embargo on CNN’s iPhone app, which launched at 8am ET today, while the Associated Press did not. That annoyed at least one reporter, Reuters’ Robert MacMillan, who wrote, “We were going to hold this until midnight because it was embargoed. That embargo has been broken, so bombs away.”

Tedd Ogasawara of our sister blog MobileContentToday reviewed the $1.99 app and said, “Its one differentiation point is the ability for you to contribute to CNN iReport. This seems a bit backwards to me (paying for the privilege of contributing news).” Ogasawara notes that with MSNBC, ABC, and Reuters all giving away their apps for free, he can’t tell if CNN’s decision is “foolhardiness” or “marketing genius.”

KC Estenson, general manager and senior vice president at CNN.com, told USA Today that the decision to charge for the app represents the company’s commitment to building a “long-term, sustainable business.”

The app is getting some good press. PCWorld noted that it “puts rivals to shame,” citing “live newscasts, video-on-demand, and a familiar iPhone interface…”