That is good news. Too bad about the "delay of several minutes in some cases between updating a package and having it be installable" though; just last month I was testing some changes to a Python package of a friend of mine sitting next to me, with him uploading to PyPI and me re-installing via pip every time. Total abuse of the system but I did appreciate how easily it worked :-P
You can host the source and eggs on another host, e.g. Google Code or Launchpad instead of PyPi. Setuptools is smart enough to follow the download links there. This won’t solve the delay if you bump the version number though.
