The Ubuntu team is moving full steam ahead on incorporating new packages into their distro, with plans for the 7.10 release on the horizon. Among other improvements, 7.10 will include Xorg 7.3 by default and Gnome 2.20. Kubuntu will be using the latest KDE 3.5.7 packages, as well as even an option for KDE 4.0 RC2. 7.10 will also be released in an embedded package, making it the first full release to do such for Ubuntu. As the article mentions, it will likely be destined for upcoming mini PCs:

Ubuntu 7.10 will be the first Ubuntu release to offer a complete mobile and embedded edition built with the Hildon user interface components, which are also used by the Nokia N800 Internet Tablet's Maemo platform. The Ubuntu mobile and embedded edition is most likely intended for use on upcoming portable computing devices being developed by Intel.
Ubuntu has received a lot more attention lately, largely due to Dell making the distro the first they will officially ship and support on their systems.

Hopefully, the increased attention will not cause the developers to detract from quality in favor of more frequent updates. The package management system for Ubuntu is arguably one of the best around. Ease of use and stability are paramount for desktop software success, and so far the Ubuntu team is doing well at that. I hope they keep it up.