IOpener hack interest has dwindled down a bit, but I still hear from people who are interested in taking things further.
Most of my activity slowed down because I moved from San Jose to Vegas for work. Now that we've FINALLY got our own Fry's Electronics, I'm starting to get back into a handful of projects that I've kept on hold. A couple of things on my IOpener hot-list are a new Linux-2.4.20 based Sandisk image with web/pop3 email support; and an IOpener LCD to DVI cable to see if I can get TFT support working that way.
I'd also love to set an IOpener up with Headphone/Mic/Speaker jacks so I can use IP Telephony without a USB dongle; and hook it up to a home entertainment system for (what's left of) internet radio. If I can fit all that into the Linux Sandisk above, that'd be schweeeet!
I think people should focus on building special-purpose Sandisk Images. With IOpeners running around $45 a pop barebones, they're awfully tempting for niche areas where space or power are constraints. Getting it running within a 16-Meg image is icing on the cake because you've got no moving parts to wear out.