Read It Later has been reborn as Pocket, which is a much more appropriate title for the service, given its newly enhanced feature set. The app is now entirely free to use (it doesn't differentiate between Free and Pro users like it did before), and its functionality has been expanded to include saved images and videos, as well. Pocket's main focus is still the saving and displaying of articles, but you can now also use it to queue up interesting Vimeo and YouTube videos, or hilarious pictures of Ryan Gosling supposedly talking to women.
I still think I'll be sticking to Instapaper because I really love how scrolling is implemented in the iOS apps, but Pocket is no slouch either. The iPad app has a gorgeous thumbnail layout of saved content, slick horizontal gestures to reveal menus, and an integrated scrollbar. Pocket also works with every app that had Read It Later integration (Reeder, Tweetbot, etc.), although it's up to the third party developers to make sure they update the service's name in the future.
There's still no word as to pricing, but the developers have hinted that Pocket does have a business model in mind (via @Flyosity), and that more news will be forthcoming. You’ll definitely want to check out Pocket on the App Store, but if you have trouble finding it, just search for “Read It Later”.