It is worth mentioning that the first stage successfully was successfully relit. I would expect footage in the coming days of the first stage soft-landing.
Unfortunately, it looks like American Islander now has a destination of San Diego, which would seem to make it unlikely that the stage will be recovered intact.
It'll be interesting to find out what happened, if SpaceX tells us. It could be anything from a breakup at hypersonic velocities to the stage sinking after dropping from three feet over the water. (Or maybe they were just there to observe that a destruct charge went off?)
http://www.reddit.com/r/spacex/comments/1nd0qc/american_isla...