If anyone is interested in improving watchlists with grouping and usability enhancements, please let me know. I have submitted a clear and practical project proposal for the 2012 Google Summer of Code and I am seeking a mentor. I will, of course, do all of the heavy lifting (coding) to make it happen. All I need from a mentor is knowledgeable guidance and occasional assistance with debugging. Please let me know as soon as possible as the applications will be reviewed in the next few days. I really want to see this project move forward with full support from the MediaWiki development community, because the Watchlist certainly could benefit from a retrofit. My commitment to this project will extend beyond the GSoC timeframe, so support in finding a mentor will certainly pay off dividends for the MediaWiki project.
My proposal is available here: https://www.mediawiki.org/wiki/User:Blackjack48/GSOC_proposal_for_watchlist_...
Thanks, Aaron Pramana