I am hoping to see VL Light intended for small desktops. It would run on ~64 mb systems. As kidd pointed, the strongest thing in VL is it is full featured out of the box. I agree with Darin we dont need to rip X, but a few cli apps can make a full featured desktop with just a few kb of ram / disk and some cpu cycles. For example, links, weechat, some msn cli app (I have one installed but I forgot the name) vim, mp3blaster, etc. Perhaps once defined the goal of this version we could start a thread about the apps to include beyond the core. I dunno about the dev tools. One nice feature of vl is it is easy to compile stuff on it, but perhaps we'll have to let them go with some libs. But no dev tools means "full featured".
Also, accepting the fact each day is harder to keep a small / fast distro, I would like to see VL Light to take the Dynamite spirit and serve as an experimenting field for Standard, looking for creative ways of getting more features with less resources and in a better, simpler way. Even when I think VL std is almost the perfect system, showing a great balance between features and resources needed, there is always room for improvement.