I didn’t realize it had been publicly released, but it has indeed: Mako! The prolific Mike Bayer has released a new open source template language. It’s a blazingly fast, plaintext-based, complies-to-Python template language with a pleasing syntax and useful features. Genshi remains my favorite HTML/XML template language, but Mako is a good choice when you’re going for speed (or if you dislike attribute-based template languages).
Mako works with TurboGears and also the newly released ToscaWidgets.