Google steps into the Source Forge arena
Currently, there is no way to search through the hosted code (like Krugle does), but I guarantee a feature like this is in the cards. As for my other "wish" -- Cruise Control is not a part of this service, but that doesn't stop developers from installing a server of their own that ties directly into the SVN repository Google provides.
Based purely on the comments from digg -- this product will be received by open source developers with a smile on their face.
On the down side, when users create a new project, they are given the option between seven different licenses. So few of them could be seen as a limitation, but the ones provided are very commonly used and should work for most projects.
Overall, this looks like a straight-to-the-point service for open source developers -- and will definitely be considered by those looking to start a new project.