Where I live--far northern CA---typically has the highest gasoline prices in the continguous states, and premium is above $3 a gallon now ($3.13), with regular hovering just below the $3 threshhold.

What's different since we crossed the $2 barrier is: 1. It was just a few months ago, 2. we're no longer a complete anomaly, but more like a bellwhether.

I don't know if the Cindy Sheehan phenomenon is well known outside the US, but there were some 1500 candlelight vigils last evening to support her (she's the mother of a soldier killed in Iraq who is camped out in Crawford and demanding to see Bush.)  At the vigil here, the number one topic was Iraq, but number two was gasoline prices.  

Politically, Bush is going to have a hard time selling his Middle East adventures if people--most of whom probably believe that they're really about oil, whether they admit it or not---see gas prices going up anyway.

"The end of all intelligent analysis is to clear the way for synthesis." H.G. Wells "It's not dark yet, but it's getting there." Bob Dylan