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Indeed, he just referenced it this weekend in his Wave review: http://paulbuchheit.blogspot.com/2009/11/so-i-finally-tried-...

Seems like the simplest way to implement this would be to add an option in the address book that says 'Automatically apply Label XYZ to this person's incoming messages' (but with less words than that).

Or a filter option for the 'From:' box that says 'In my address book' or something like that.

While slightly cumbersome, I think you can create a folder for specific people and then apply a filter to have those e-mails go directly to those folders.

I guess that's something Xobni's already done, but only for Outlook. Would they make something for Gmail?