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That is good news. Too bad about the "delay of several minutes in some cases between updating a package and having it be installable" though; just last month I was testing some changes to a Python package of a friend of mine sitting next to me, with him uploading to PyPI and me re-installing via pip every time. Total abuse of the system but I did appreciate how easily it worked :-P
This is better than good news, this is GREAT NEWS!
One of the responses notes that they will by eliminating the delay in the future, so you'll only have to put up with this inconvenience temporarily.
Maybe next time use Python's SimpleHTTPServer (or for a more (empirically) stable experience, node-static) and direct pip to download from there? :)
You can host the source and eggs on another host, e.g. Google Code or Launchpad instead of PyPi. Setuptools is smart enough to follow the download links there. This won’t solve the delay if you bump the version number though.
Woot! Pypy is a little slow sometimes but this is a great change for me as I'm getting more into python and doing "experiments" with virtualenv and pip.

Thanks for helping Pypy Fastly!

It's PyPI, PyPy is a different (unrelated) project.
Wow, finally! Pypi was so damn unbelievable slow at some times, i'm really happy for this change, great great great!
Fantastic news! Pypi downloads were the slowest and most unreliable part of our install process. It is/was so bad that it almost always failed when you have a mid sized list of new packets to install.
The performance has indeed improved greatly. Too bad it doesn't seem to support IPv6 though :(