As I understand it the Fedora project is a community driven version of Red Hat Linux and the current Red Hat Linux code, documentation etc, will be merged with Fedora. So basically, you'll still have Red Hat Linux, it's just called something else, and it is a community that controls it.
Also, there will still be a Red Hat Enterprise Linux Workstation version, which will be version for workstations, only not targeted at consumers.
From the little I've looked at this I see only good things from this. Red Hat concentrates on the server business, which is where they can make money and won't have to compete with Microsoft at their best. As a user, you'll still get a desktop system, which makes use of the latest softwares with lots of releases.
On the other hand, I'm finally switching over to Debian soon so it doesn't affect me. Well, I've said I'm going to switch to Debian for years, but now I have lots of free disk space and downloaded an install cd so I'm close. =]
