At SMX West Matt Cutts of Google announced they are actively working on the "next generation" Panda update that will "soften" the algorithm. Matt specifically said this is aimed at helping small businesses that may be impacted by the Panda algorithm. There was no date given on its release but he made it clear, this will be a bigger update that will make Panda less of an impact on certain sites. I guest this should be a good news for many web-sites that have been hit by Panda and have not yet recovered! However it still remains unclear how far they'll go in softening the algorithm.