We've made some massive headway in the last two weeks;
First, we have physics processing back. We're using ODE for now just to get us through the next release cycle or two, but we've modified its headers (ABI-compatible) to work better with libsoy. Done are the days when we stress over API compatibility, since we've decided to write our own fully integrated (and scaled down) physics processing with Orc we have a certain freedom to throw their conventions to the wind.
How this is going to play out is a slow migration of values to arrays. Body data, for example, will be stored an array inside a scene so SIMD processing can be used more efficiently. The Soy Body class will represent a pointer to that array and include properties and methods for working with its data. The actual storage of that data will be governed by the Scene, giving it the freedom to sort bodies per "island" (groups of bodies connected by group). This is similar to how ODE processes bodies already and we'll be likely using their code as a starting place.
Second, we have the basic types for rendering. At the moment this is just a rotating cube, but that involved roughly 6 classes operating in both GObject and Python domains. The next step is soy.models.Mesh for rendering more complex shapes.
Third and most exciting, our humble game engine can now run as a Firefox plugin! There's some bugs to be worked out still, but "embedded" support has been added to our soy.widgets.Window class that allows it to run inside virtually any application.
With luck and determination we'll have the next release out by the end of the month. I've dialed back our goals considerably given that its a rewrite from our last beta release but our release cycle will be much shorter now that the rewrite is finishing up.