2 steps forward and 1 step back:
0.7 continues to look good. I made the "mistake" of playing the mod, though, and am running in to the various annoyances that you just never get to when testing to see if a bit of scripting works the way you intend it to or not. Most are easy enough to fix but it all takes time.
So in short- 0.7 slowly creeps towards release, and when it finally is released it should be a far more valuable and stable mod then it has been. The team is just getting really good at working with the mod. I'm not saying it will have NO bugs, but it won't have the bevy of show stoppers that plague 0.6.x.
Major advancements include finally being able to cook cobl foods (without the need for a glue mod- I love OBSE), a basic assortment of craftable containers and furniture, some new skills that are integrated with Kyoma's X-Skills mod (if its loaded). I'm even playing with the idea of overhauling smithing to bring it up to date with the rest of the just-swing-at-it way of doing things... and allowing for yet more possibility to craft items from other mods in the process. Lessee... we've added "Weapon and Armor Care": simple ways to quickly repair your items by taking care of them- oiling and restringing bows, sharpening blades, sewing and oiling leathers and furs, oiling metal armors - that kind of thing. The idea being that you can keep your gear in good working order by taking care of it- and not need to use the funky repair hammer interface. Repairing things with your Smithing Hammer works a bit better, as well.
The best part is that all most of the above functionality has not only been added but its been tested, rebalanced and documented far more than ever. The team really rocks.

Aloha,
C