Google has just entered the project hosting arena. It's a simple system for now (home page, tickets, Subversion), but as Andrey Petrov points out, once they integrate Google Groups, blogging, Google Pages, and Google Calendar, they'll have a compelling system.
What does this mean for DrProject? Nothing yet (at least, I don't think so). All Google-hosted projects have to be open to the public, which rules it out as a platform for a typical software engineering course (in which each team of students is working on the same problem simultaneously). Google also doesn't provide instructors with the control they need: there's no way I could assign someone to a group, for example, or file identical tickets against each of 20 projects. Still, if they ever bundle it so that it can be installed on other people's servers and administered locally, it'd be a knock-out.