well, the most "notable" development are the new LEDs. The CREE XR-E is about twice as efficient as earlier Luxeons; the SSC P4 maybe almost as efficient, has a nicer (or at least rounder) beam. the XRE's have been a bit more powerful.
So far, Fenix has been the most aggressive in incorporating the new LEDs, with the P1D CE in a 1xCR123A formfactor and the L1D and L2D CE's in 1x, and 2xAA formfactors. These have plenty of useful modes (from low to med to hi to highest) and beat almost anything out there in terms of lumen output/runtime tradeoffs.
Lumapower has come out with the M1 a powerful throw 2xCR123A formfactor with a CREE. Similar lights are just out by Huntlight. There are some big fans of the HDS around here, but HDS was bought by Novatac and it has said it will come out with a great new updated light but we haven't seen anything yet. For big throw in a 1xCR123A formfactor there already is the Lumapower LP mini.
In the SSC P4 you can find the LUmapower F1 already out.
The Inova's tactical (Tx) lights have just been updated but only to a K2 luxeon, so they suffer in the runtime/output department. They also have a new line out, the bolts, but not sure that they are really worth much attention.
Surefire has announced some of their LED lights will get either the CREEs or the SSC's (L1, L2, one other) - you can find details in their new 2007 catalog which is must made available on their website and can be downloaded (no need to wait for snail mail). So they benefit from increased runtime mainly (SF seems to have chosen mainly runtime rather than higher output from the new LED's). SF disadvantages - price is always one, of course, but also that the new CREE lights are said to be several months away from being actually available for purchase - the ones I mentioned above are already out (I own most of them already!).
Streamlight, Pelican, not so much in the new LED's yet, the new Streamlight Survivor LED is interesting because of the formfactor but uses a Lux-III. Tektite remains behind the times with uncompetitive offerings (meaning weight vs output vs runtime, not formfactor which remains strong for divers).
There are new flashlights out also from cheaper, not really well known Chinese manufacturers starting to use the new CREE's, the best way to track them down is to read x2x3x2's reviews in his new website, he tracks down and provides info (with runtime/output measurements planned soon) on these - there are threads started by him in the LED forum so you can find them there. Some he recommends and are quite powerful in terms of lumen output while being also cheap (e.g., less than $30) - you have to be careful that some only use rechargeables (cannot use primaries) which could be a consideration for you.
For mods, the McGizmo offerings have the new LEDs (but are very expensive, $440 per for very small EDC's in titanium). Elektrolumens continues to provide modded lights using CREEs as well, and also in multi-LED formfactors for bigger outputs.
Finally, there is a thread (sticky thread, at the beginning of the LED forum) which tracks which lights have the new CREEs in them.
So, there, one post, summarizes many weeks/months of research!