I've heard from a number of University groups doing work with Python for S60 (PyS60) but the Entrepreneurial Programming and Research on Mobiles program though the University of Nairobi and MIT is perhaps the most inspiring. The program's first course, "Mobile Application Prototyping with Python" is being taught to students with little to no programming experience, in hopes that this education can lead to economic growth for poor communities.
During the development of PyS60, it didn't take long to see that Universities were going to be a huge early-adopter of mobile Python, but the idea that someone's first experience programming a computer could be with PyS60 is truly heart warming.
In other PyS60 news, the S60 Multimedia Blog has a post titled, "Manhattan Story Mashup", with quotes from the behind-the-scenes development of the real, "Manhattan Story Mashup" project, which was developed in Python. I love quotes like, "I have spent only some 2-3 weeks implementing the client in total. Almost like magic."
Finally, I wanted to mention Teemu's new PyS60 app, Fupper a Flickr uploadr for S60 phones.