It's late, but it's finally here.
X Server 1.7 has been released. This major X Server update finally delivers on X Input 2.0 and Multi-Pointer X support along with other input improvements, cleaned up XKB code, VGA Arbitration support, EXA improvements, XDMX support, working XQuartz for Mac OS X, and many other changes.
The lengthy mailing list release announcement detailing this work can be found on
X.Org. X Server 1.8 should come in about six months.