Looks like it isn't "officially" released as the main site hasn't yet been updated, but it probably will be soon.
I have to say, though, of all the web frameworks for python, I particularly like this one for its simplicity (and it's released as public domain, to boot).
I find Google AppEngine's webapp to be a much improved version of web.py. It's not as ridiculously short, but it's much more polished, and the added bulk is universally useful.
I hadn't seen their indigenous templating system before -- it looks pretty slow, though not as dog-slow as Genshi.
I have to say, though, of all the web frameworks for python, I particularly like this one for its simplicity (and it's released as public domain, to boot).