Now that Drupal 7 is open for development, people have started thinking about their personal battle plans for the next release. In the announcement, Dries mentioned the 11 wish list items that the community thought would make an excellent Drupal 7 release. I will be focusing, with Scott Nelson and the other Services people, on number 10: Better external APIs (import/export, webservices). Well, the Web Services part.
The Services module provides a slick API to implement common web services across a number of different protocols (XML-RPC, SOAP, REST, JSON, etc). Web services have become a very important part of how the websites interact with the user (think Flickr, Last.fm, Google, del.icio.us, etc). Getting parts of the Services module into core would mean that Drupal would have the ability to act more as a web service for external applications. It would allow Drupal to grow beyond the web, allowing interaction with the user in new platforms and in different ways.
Scott will be hosting a session on Services at DrupalCon 2008, so if you're interested in seeing where we'd like to see Services in Drupal 7, I think you should attend.
Since we had troubles with the VNC server when I hosted the Drupal Dojo, I've put together this screencast to demonstrate getting a software application to communicate with a Drupal server with the Services module. Enjoy Drupal and the Desktop.