Havoc 2 in 1.7 planned for 2-3 months from now, focus on bug-fixing, HTML-on-a-prim and vector graphics confirmed, Lindens want you to use the voting system for features.
The semi-short list, bolded for emphasis

Cory Linden: "Jillian Callahan: Is Havok 2 on the 1.7 schedule?"
Cory Linden: Yes
Cory Linden: "Francis Chunk: Is the LSL virtual machine moving to Mono? What does that mean?"
Cory Linden: Yes. In the short term, it means that scripts will run at least 100 times faster than they do today. In the longer term, it means that we can allow
scripts to be written in any language that supports the common language infrastructure,
Cory Linden: such as C#, Python, Java, etc. Mono is a 2.0 feature, so Q1 of 2006.
Cory Linden: "Pepplar Sklar: New renderer details?"
Cory Linden: The 2.0 renderer is multithreaded, is designed to scale much better with increased CPU and GPU capabilities, while also being able to scale down
more effectively for low end hardware.
Cory Linden: The biggest change is a move to Open GL Vertex Buffer Objects, which largely eliminate most of the current differences between our ATI, NVIDIA,
and Mac render pipelines.
Cory Linden: "Cristiano Midnight: When do we get an increase in prim limits?"
Cory Linden: A large part of the 1.7 effort is related to scaling and reliability on the sim side and involves fixing aspects of our culling and visibility calculations.
We expect the new approach to be faster which, when combined with Havok 2,
Cory Linden: should allow for an increae in prim limits with 1.7.
Jeska Linden: Hiro Pendragon: When can we expect an API for the GUI so that we can customize it?
Cory Linden: Not in 1.7 but hopefully for 2.0 . . . very high on our list of new features once we are on top of bugs.
Jeska Linden: Icon Serpentine: Is an expanded keyboard control interface in the development plans between now and 2.0?
Cory Linden: yes, but on the 2.0 side of "between now and 2.0"
Cory Linden: next
Jeska Linden: Verbena Pennyfeather: Will LL ever impliment simple programs, like a calculator, web browser, or such into the client?
Cory Linden: yes
...
Hiro Pendragon: Cory, you said HTML / vector will be done... can you answer when?
Louis Neutra: cory u r hot
Cory Linden: not yet, Hiro . . . order will be HTML first, vector later
Hiro Pendragon: HTML gooooood
Jeska Linden: Chavo Raven: when will we be able to write to note cards? and when will we be able to modify object permissions with LSL ? and will we ever get
past the tiny memory allowed for scripts ?
Cory Linden: No, maybe, yes.
Cory Linden: Instead of writing to notecards, we're going to provide a different method for permanent, shared and large storage. Cory Linden: The memory limit will be much easier to get around after mono integration.
Jeska Linden: Hiro Pendragon: When will LL de-centralize the asset server?
Cory Linden: In some ways, we already have, but we'll really have to do it when we have machines in multiple colocation facilities.
Cory Linden: on the 1.7 list is revamped object-object communication so that they won't have to use llemail (which is expensive)
