Extremely large-scale multiple-input multipleoutput (XL-MIMO) is believed to be a cornerstone of sixth-generation (6G) wireless networks. XL-MIMO uses more antennas to both achieve unprecedented spatial degrees of freedom (DoFs) and exploit new electromagnetic (EM) phenomena occurring in the radiative near-field. The near-field effects provide the XL-MIMO array with depth perception, enabling precise localization and spatially multiplexing jointly in the angle and distance domains. This article delineates the distinctions between near-field and far-field propagation, highlighting the unique EM characteristics introduced by having large antenna arrays. It thoroughly examines the challenges these new near-field characteristics pose for user localization and channel estimation and provides a comprehensive review of new algorithms developed to address them. The article concludes by identifying critical future research directions.