The W3C's HTML working group today resolved to start from the current WHATWG work. Specifically, the group resolved to review our work, and will probably build on it.
They also resolved to call this work HTML5.
Thus, the "Web Applications 1.0" spec is now officially named "HTML5"!
I have also checked a copy of the two main WHATWG specs (but with the W3C boilerplate) into the W3C CVS server.
Going forward, any changes will be committed to both the WHATWG and the W3C repositories simultaneously.
Nothing will especially change about the WHATWG. Feedback sent to this list will still be taken into account, as it always has. In fact, my first order of business going forward is to respond to the thousands of e-mails of feedback sent to this list over the last few years; you may have already noticed me doing this.