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From my understanding, this is kind of a squid / load balancer in one? Or is it really just Yahoo's version of squid?
Travis, yeah my impression is similar -- a reverse proxy cache (e.g., Squid or Varnish) plus a light weight layer 7 load balancer (which is how I tend to use nginx)
Wonder how this will compare to Nginx speed-wise...
I'd love to see a comparison with varnish which has extremely similar aims.
I don't understand why this comment was downvoted?
I could really go for a sane caching load balancer. My experience with stuff like pound,squid and nginx so far leaves much to be desired (and chaining them isn't exactly desirable either). Why do they have default maximum url lengths less than IE that can only be fixed with a recompile, its madness I tell you :p
Might want to try Varnish ( http://varnish.projects.linpro.no/ ), which has seriously impressed me with both its performance and flexibility.

I'm really interested to see how TrafficServer stacks up compared to Varnish.