|Status:||postponed (maintainer needs more info)|
In Drupal 7, taxonomy uses the Fields API, which means that taxonomy behaves more or less like a CCK field did in Drupal 6. This has huge implications for the Taxonomy Defaults module, because all Fields already come with the ability to designate default values on a per-content type basis. That's the core function of this module, and its now being done in Drupal core, which really undercuts the value of this module. The only other major feature of Taxonomy Defaults is the ability to force terms onto a content type by hiding the select box in the node/add form, but this is also easily replicated with the taxonomy access module, or whatever field access module will fill that niche in D7.
There are edge cases, of course, and I'm sure I'm overlooking some things, but overall my sense is that the Taxonomy Defaults module's end is near, and that I shouldn't bother with a D7 release. However, please use this issue to discuss any concerns.