It would be awesome if they pranked us and on the last day added "oh by the way... breeding" to the change log, but I'm going to predict it will be part of the post 1.8.2 patch. I'm really unclear how it will work now if animals don't despawn - will new ones spawn when you slaughter them? - but I guess we'll know for sure soon enough.
I believe in either a tweet, interview, or somewhere here on the forum it was said that animals will respawn like they do now. However, they just won't despawn anymore. So new ones won't spawn until you kill the others.
The whole change-log is at the top of the Xbox 360 section...
http://www.minecraftforum.net/topic/1274802-mcxbla-title-update-change-logs-182-title-update-5/
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