I've been running it since the first beta and it has definitely improved, and works great. Launcher2 still needs improvement but he put launcher in there for people who want a seemless experience. V1.0 is built from the Droid 2.1 kernel so it's a little more optimized, and doesn't even need the OCing, where the betas did to get rid of some lag with launcher2. He's working on an OC kernel, but can't check up because alldroid is finally changing, after months of talk about it.
Live wallpapers work, haven't tried them with the 2.0.1 launcher but you still will get reboots ocasionally with launcher2. Keyboard backlight, and unlocking when opening keyboard need to be fixed, but it'll happen, koush knows what he's doing.
His recovery image, clockwork recovery, is different from SPrecovery. It's from official nandroid source, so it makes fastboot compatible .imgs (droid doesn't use) but has the advantage of working on many android phones. The point being, backups made on one aren't compatible with the other, vice versa, so your SPrecovery backups won't work with it.
Any other specific questions I can answer. Oh yeah, he incorporated code from people over at AOSP, one very cool part, 360