As predicted, Skype v2.0 with video functionality has launched before the holidays.
Skype Video is available only for Windows users currently (and the compression technology they are using is windows only, which could significantly delay an Mac version).
While video functionality is great, I’d actually much prefer the ability to share applications (browser, powerpoint, excel, etc.) through Skype, making it significantly more useful for business calls. In other grumblings, Om Malik ponders whether independent developers will continue to build for Skype, since they tend to subsume the better ideas (Festoon, Skylook, etc).