This is good news for Seam 1.2 users since we now have full support for creating Eclipse WTP compatible projects including Seam 1.2.1 hotdeployment of Seam components. Add in the full incremental in-sync deployment to JBoss AS servers and you got a pretty sweet and fast development environment.
The relase also provides some news for Hibernate Tools users and other additional bug fixes; you can read about them in What's New and Noteworthy
Before you ask, then no Seam 2 is unfortunately not yet supported for the project creation wizards, but the code completion and Seam views will work with Seam 2; just need to right click on the project and click
Add Seam support.
...and if you are really into it you can use the Seam 1.2 generated project as a basis for migrating the libraries and configuration files to Seam 2 counter-parts and you will have all the goodies with hotdeployment available too you.