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It compiles! Ship it!
Finally, after a long long time of rethinking, refactoring and porting, here comes the first 5.x-2.x release with a fully restored feature set - meaning that it does everything that 5.x-1.x did, or at least it should. A bit of API documentation still needs to be adjusted, but from a user point of view this stuff should be on par with or better than 5.x-1.x in every aspect. The Git and Mercurial backends have not yet been ported at this time, which is probably the only reason why you wouldn't want to try this out.
The purpose of the 5.x-2.x series was a major change in how to organize and treat commits, branches and tags. This not only comes with performance improvements (theoretically, not benchmarked) and a massive simplification of code required by backends. It also cuts down on database tables and makes it possible to treat commits, branches and tags (now unified as "operations") in a similar fashion where appropriate. Along the way, 5.x-2.x clears the way for sane repository browser functionality (experimentally implemented in the experimental Repoview repository browser prototype) and generally revamps pretty much everything that is not repository or account specific.
For you as a developer, this means more possibilities with the same amount of code, and stuff that wouldn't have been maintainable before might become feasible now. Have a look at the insane API changes documentation page (fully documents all changes of public functions, as far as I can tell) to get a grasp of the new API and a help for porting your code. You are now officially invited to port the remaining VCS backends, or write new ones (*cough*Bazaar*cough*).
For you as a user, this means that Commit Log now displays commits, branches and tags on a single page. Also included is an attempt at workflow_ng support, although the set of actions and conditions is still rather minimal. (If you want to help out, here's where you can get lots of neat features with little code.) There have been slight usability improvements and various bugfixes in other places too, but essentially there's little more to see here. You should still upgrade just because this stuff is cool, and the Drupal 6 version will require an upgrade to 5.x-2.x anyways before you can migrate to 6.x-1.x.
The 2.0 release will incorporate a few more new features (again, mostly invisible to the end user), I hope to push it out in December still. Regard this alpha as a "welcome back" release - it feels like ages since the development branch was in a fully working state. This is the restoration of Version Control API's old glory... and now, for the cool new stuff!