drupal wysiwyg
Google Closure
Today Google announced general availability of it's set of javascript tools called Closure. The set includes a Javascript compiler, library and template engine. In the javascript library they include an api for using their text editor. This is the same text editor used in many of Google's web applications like Google Docs, Google Wave, and Gmail... apparently.
Drupal Specific WYSIWYG
Personally I think a Drupal specific solution would be very beneficial (if done correctly). I had begun development on this solution which can be found at http://drupal.org/project/editor
It is nearing the first beta release and is fairly functional for the most part (I currently use it on a few sites), although there is a VERY large todo list. Unfortunately I have next to no time to work on this module at the moment but if anyone is interested let me know.

