KDE4 is by far the biggest linux development of 2008. The development version of 4.2 is already superior to OSX or Vista, and it will only get better. It even spawned Compiz++ which should also improve the desktop experience.
I wonder why Android doesn't run with Qt by default.
I have heard rumors of a GNOME 3 and I wish them the best of luck, but I'm definitely sticking with KDE for the foreseeable future. I just hope this means Canonical will give Kubuntu more love.
For 2009 I want: PackageKit, Gallium3D, KMS, OpenGL 4, Btrfs, and better Coreboot support.
A year from now I expect to be running a 10 inch multicore netbook with OLED, SSD, and all of the above features preloaded
One question to ask is, why KDE, Gimp, Wine and Virtualbox are called "Linux innovations". Those are crossplatform and widely used on other operating systems. Their obviously Linux roots are no longer a factor. KDE team, for one, stated few times that what they dislike is to be closely tied to one operating system.
Other question is why opensourced hardware drivers are called innovation? I understand that those were big steps and achievments, but please, innovations?
So I'd rename the list to Great Open/Free Source Achievments of 2008.