Phoronix talks about the great Linux innovation of 2007.
To summarize, the following were some remarkable events:
1. Virtulization support in the kernel, along with VMWare's VMI, Xen Quest and QEMU accelerator going open source
2. Desktop Bling - Beryl merging back with Compwiz creating a "Compwiz Fusion"
3. ATI introducing brand new driver code-base along with support for Radeon HD2900XT and AIGLX. ATI/AMD releasing their GPU documentation.
4. SplashTop