Yeah it's well on the way. I'm curious to know how much influence social media sharing is going to impact the algorithm.
It was released on Monday, here is a good article and Q&A with Matt Cutts I read last week if you are interested- http://www.stateofsearch.com/matt-cutts-ses-san-francisco/
There is a some anxiousness about how the latest update is going to affect the rankings and how much is it going to affect. There have been a couple of updates in a very short interval and every update has affected the results even though just a little in most of the cases, but it will be interesting to see how things turn up now.
Yes, you are right. It mostly focus on the quality. It penalize over optimized site. If your site contain low quality content or more advertising then it suddenly decrease your ranking.