Tax question regarding New 2006 IRA rule

Hi all--

I read somewhere saying high-income folks who never bother with an IRA because they can't qualify for either a Roth or a deductible Traditional IRA should contribute this year. Beginning in 2010 everyone can convert an existing traditional IRA into a Roth IRA regardless of income (until then, only individuals and couples with incomes below $100,000 are able to convert).That is like getting potentially a six-figure retirement nest egg that's absolutely tax-free (not tax-deferred).

Any CAP/tax expert want to enlighten us on this? Any pitfalls on this? Greatly appreciated!