The HTC Incredible S was announced at MWC yesterday, sporting a 4-inch WVGA screen, second-gen Snapdragon, and essentially everything else that the Thunderbolt has.
The Incredible S does have a bit of a leg up on the Thunderbolt, however, coming with Gingerbread, and navigation keys that rotate with the phone. I would find that a little disconcerting, but I'm sure there are some who will consider it a nice touch.

However, this phone is disappointing to all you Incredible lovers - it's Euro-only.

[Source: Hands-on: HTC Incredible S Android Gingerbread, New Sense, Rotating Navigation Keys]