Intel has sent out a press release saying its next-generation Nehalem processors will indeed bear the Core i7 brand - at least, some of the chips will.

The first products in this new family of processors, including an "Extreme Edition" version, will carry an "i7" identifier and will be formally branded as "Intel Core i7 processor." This is the first of several new identifiers to come as different products launch over the next year.  Intel goes on to explain that the Core i7 badge will go on "high-performance desktop PCs with a separate black logo for Intel's highest-end 'Extreme Edition.'" The first Nehalem CPUs are still on track to hit production "in the fourth quarter of this year."

i7 does not have any special meaning per se (after all Nehalem is 4 cores and 8 threads!). So think of i7 as somewhat of a generic identifier for now (there will be other identifiers to come that will make it more clear). It is a way separating the new and improved high end desktop processor brand from other existing brands. It represents a collection of factors and highlights unique attributes of the particular product in the family of processors, including performance and other features.