Actually, I think he means it like "it's the shiznit", as in, it's good.
I
think the key is it's preceded by "is
the" as opposed to just "is"...
Oy, I hate "gangsta" talk...makes me feel like a stranger to my own language.
IT'S ALL YOUR FAULT, SNOOP DOGG! (Or dawg...or dog, or ddog, or however he spells it...ack)