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Does this mean we're talking about OmniFocus 2.0?

In other words, will this be a major release cycle or another point release for 1.x? (Not that point releases aren't major in some cases)

Reason I'm asking is I'd love to get tags and smart folders in OmniFocus. Perspectives just aren't my favorite way of viewing my data. They can co-exist I think.

Tags can co-exist with contexts too. For those that prefer tags, they can just hide the context field and vice-versa. This would allow people to easily pick the way that works best for them.

The other major thing I'd like to see is better options for repeating tasks. Follow the path set by Things and The Hit List. For all of the things Cultured Code got wrong with Things, the repeating task part is something they got right.

Visual updates are definitely welcome too. I feel OmniFocus is the worst looking of the three major task management apps I've used but it's also the best in terms of features. So I keep coming back to it even though it's sorta terrible looking. It needs a bit of an iLife overhaul in the looks department... less overhaul on the features.. don't pull an iMovie on me. But definitely update the looks so that it feels like a real Mac app.