Supposedly Xcode 4.4.1 drops all support for armv6 processors. It doesn’t appear to be that way since you can still compile for armv6 by adding it as a target and the app will run on armv6 devices. However currently running the app directly from Xcode causes my iPhone to reboot. I think it may be because of my gimpy (4.1 redd00r) firmware, I’m gonna reflash when I get home and try again.
Edit: Ok, running stock 4.2.1 everything works exactly the same as it did in all previous versions of Xcode 4. You just need to add armv6 as a target, use GDB instead of LLVM for debugging and set the deployment target to iOS 4.2 (For iPhone 3g, 3.1.3 for 2g). Armv6 works just peachy, it’s just not the default option anymore.