The Linux 2.6.34 kernel delivers many open-source GPU driver updates, GPU switching support, the LogFS file-system, faster KVM networking support, Btrfs file-system updates, the VMware memory ballooning driver, and many other changes. A more exhaustive list of the Linux 2.6.34 kernel changes from architectures to network drivers is listed on the Wiki at KernelNewbies.org.
Now with Linux 2.6.34 out there, work on the Linux 2.6.35 kernel can get underway. For this next kernel that's coming a few months down the road we are looking at good ATI Radeon KMS power management, ATI DRI2 sync and swap support, Intel H.264 VA-API video acceleration, and other improvements to come.
We continue to benchmark the very latest Linux kernel code on a daily basis on multiple test systems at kernel-tracker.phoromatic.com.