Just as I thought, Google today launched a service that is built on SVN and can be looked at as a stripped down version of Source Forge. They call the service "Google Code Project Hosting" and it can be found here.
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.