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Some highlights:

1. Advanced REPL support with smart auto-indent and auto-completion for comfortable interactive typing pf Python code, easily switchable to paste mode to copy pre-made code snippets.

2. Support for client SSL connections.

3. upip, MicroPython builtin package manager, is now fully standalone thanks to SSL support.

4. There's new, elaborated API to access hardware features ("machine" module).

5. There're now 2 well-supported microcontroller boards for MicroPython, and dozen(s) community-supported ones.

6. MicroPython was selected as one of the languages supported for BBC micro:bit initiative: http://ntoll.org/article/story-micropython-on-microbit

>1. Advanced REPL support with smart auto-indent and auto-completion for comfortable interactive typing pf Python code, easily switchable to paste mode to copy pre-made code snippets.

That's better than the 2.7 Python REPL right? Is 3.5's REPL like that?

If not is there any effort to get that kind of REPL to regular Python?

It's better than 2.7 REPL, definitely. It's a bit different than 3.5 REPL. 3.5 does more for you on auto-completion front, but MicroPython is much better on smart- and auto-indenting. Give it a try - it's easy to build it for any Unix-like system, let us know what you think about its REPL!
I've played with micropython on an esp8266 board, this one in specific: https://learn.adafruit.com/adafruit-huzzah-esp8266-breakout/... and it is quite nice, although it still lacks much of stdlib as it all has to be written from scratch.

That being said, the project is fantastic and they're on github, so send them pull requests:

https://github.com/micropython/micropython

There's also pretty large subset of stdlib available: https://github.com/micropython/micropython-lib . But it's targeted primary at Unix port - you can install it even on a low-cost Linux board with 4MB of Flash (~1MB free space after Linux kernel and minimal userspace), and rock away!
Any chance that the esp8266 port will be improved to be a bit more stable? I'm happy to send you some huzzah boards (seriously) if you want to work on it.
Thanks, I have full drawer of boards ;-). If only I had enough time to work on them. esp8266 port progresses, but quite slowly. We need more people to contribute (spreading a word is helpful). Another option to give it more momentum is some company to sponsor it, or Kickstater organized. Let me know if you have any ideas/interest, otherwise, well, feel free to keep that in mind in case suitable occasion comes out later. Thanks!