I also recall reading PyPy's blog, especially a blog post about their Prolog based JIT prototype and I thought "wow, this sure seems like a complicated way to implement a JIT engine, I wonder if they will ever implement something that can run real code".
Fast forward to today and Unladed Swallow is dead and PyPy has implemented a Python implementation that's compatible with Python 2.7 and beats cPython 2.6 on various benchmarks. Pretty impressive and kudos to the PyPy team.