The benefits of Android 2.3.5 will soon land in everyone's favorite custom ROM: CyanogenMod. It's probably safe to assume that it could land in CM7 nightlies as early as tonight or tomorrow, but that's just an educated guess. If you're a nightly user, take a look at your version after you flash the next update, you may just have the most recent version of Android at your fingertips.
Definition: A "nightly" is a bleeding edge release that is built on a daily basis, usually at night after a full day's worth of new code has been committed.
It could oftentimes be unstable and not properly tested, lacking any changelogs, but eventually evolving into alphas, betas, release candidates, and finally stable releases.