I haven't tried it yet, but I looked at the diff in the trunk....very nice :) Hopefully, I'll get a chance to check this out soon. I'm actually writting two web2py apps. One is my WordPress clone which is my side project, which is what I needed short URLs for, and my other app is one for work that will hopefully replace an enterprise app written in C#.
Anyways, I'm going to make another thread for this, but now that applications can have their own routes.py, it might be nice to be able to edit the file from the admin interface.