CyanogenMod is the best thing that has happened to the AOSP. It is often better than the official ROM from a performance perspective and makes optimal use of the hardware. The lack of bloatware makes this a choice for many whereas; the option for using Google Apps like Gmail through gapps adds flexibility for those speculative about sharing their data with Google.
CyanogenMod has successfully previewed the latest build of CyanogenMod version 7.0 running the Android version 2.3 codenamed Gingerbread. The new build supports A2SD and App2SD that allow users to move applications between phone and SD card storage and options to overclock the device.
Another important update is the inclusion of the latest Android market. There are plans to change the default music player in Gingerbread. However, there is no confirmation on the matter. The first noticeable change will of course be the boot animation that clearly says CyanogenMod 7.
I have used CyanogenMod for the last six months and highly recommend using CyanogenMod if you have a rooted Android device.
View the preview video here.