The last little modification in X/Qt was approximatively 120 days before today (4 months) according to their cvs repository.
A few people like me were wainting for windows rootless mode. The project certainly need X11 developers to acheive this.
It's better than xzaurus thougth.
If you have an SL-C700/750/860 you could try pdaXrom. It works great, there's a lot of powerful applications, wifi / usb works out of the box, applications are optimised for the Intel xcale processor, ipkg manager works great and... what I didn't know... all source code is available. Add to this that the system developpment kit is easy to manage and works since many months (or we wouldn't have pdaXrom running on our Zaurus ...