A4 CPU - 1Ghz now; the question is if this CPU will actually support the ARM instruction set. the worst thing to have in place is a CPU that has to translate or emulate ARM - this has proven a nightmare on x86 with stuff like windows mobile emulator.. if existing apps are going to run well; there must be some ARM instruction support.
I thought the A4 was just a modified ARM chip? isn't it? I don't think apple created an ENTIRE new architecture
Apple bought an ARM chip manufacturer back in 2008, I know that doesn't answer your question but that would lead me to believe it's ARM.
wiki (the almost reliable source ) says it's ARM-based. and I'm quite sure it is, wouldn't make any sense for them to go with a completely new architecture AND instruction set