From the release notes:
Camino 1.1 Alpha 2 is a heavily-updated version of the only native Mac OS X browser using Mozilla.org’s Gecko HTML rendering engine. Notable improvements include enhanced tabbed browsing (“single window mode”), integration with the Mac OS X spell-checking system, detection of RSS/Atom feeds, an improved design for the “blocked pop-up” notification, enhanced options for cookies and downloads, and a resizable search field in the toolbar. This release also includes enhancements in speed, security, and rendering accuracy brought by version 1.8.1 of the Gecko rendering engine.
Note that Camino 1.1 Alpha 2 is in the “alpha” stage, which means it is still under active development. We feel that it is usable on a day-to-day basis and is a large improvement over Camino 1.0, but you may still experience bugs and some functionality may not work entirely as intended. The goal of this early release is to demonstrate the team’s progress and to allow users to report problems early in the development cycle.
Camino 1.1 Alpha 2 shares the same code base as Firefox 2.0, both being based on version 1.8.1 of Gecko, and thus shares many of the security fixes and Gecko improvements that are in that version of Firefox.
Finally we’ll see real session saving, better tab behavior, feed detection and integration with Keychain for password saving. This is in addition to the integration that Camino already supports for the Apple Address Book.
There’s still no support for Firefox Add-ons and it’s unlikely that we’ll see any in the future, but the Camino 1.1 release, built on top of Firefox 2, is starting to shape up nicely.
Factory Joe 
I’m 95% sure that Chimera/Camino has always stored passwords in the Keychain. The recent change they made was to store them there in the same manner Safari does for better interoperability there.
The nightly builds have been getting better. It was nice to see spellcheck not only detecting spelling errors, but offering to correct them.
I still get some really weird freezes from Camino when downloading files: the spinning beach ball of death. It actually locks the desktop up. Wish I knew if that were a local problem or not.
We Mac users sure have a bunch of great browsers from which to choose these days.
Oh, the awkwardness of Ingrish. Until I read your article, I read sucks as in bad, instead of sucks as in pulls.
on my older mac ibook camino is terrible. and the new mac updates erased the perfectly fine firefox. and… really the list goes on and on someday but for now… dont bother… my prediction is apple is going downhill…