A gentleman named Vic Gundotra; VP of engineering at Google, just recently at MWC 09 showed eager visitors a working version of an offline Gmail web application. As of now reports are saying that Gundotra had stated that this was just a "technical concept" right now that essentially depends on HTML5's AppCache and Database standards, that would have the application as well as all the user data on the handset.

The same reports also mentioned that the application was running on the newest Android handset from HTC - the Magic. The application also featured a floating toolbar for tracking information like emails and browsing.
This is as official as it can get for now. However, Google has released no official statements about the apps release or its price so stay tuned.
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