For the record, in case anyone wants to file it away...yes, the iphone does recognize the number change on the settings display. This converted almost immediately after the porting process.
As for itunes, the ATT porting rep swore up and down that it too would recognize the new number. It didn't right away and he said it was a server thing and that it would recognize the new number in the future. I was somewhat skeptical but now a day later, itunes has in fact the new number on the display.
No new sim needed either. The whole process was done via phone and took about 30 minutes total. (The rep said initially it would be three hrs for the ported number to be functional).
Hope this info is helpful to someone out there.
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