A number of smaller Python-based projects were denied, but the Python Software Foundation was pretty generous in accepting projects that are using Python rather than working on Python itself. If you check out http://socghop.appspot.com/org/home/google/gsoc2009/python you'll see that Sphinx, PySoy, NumPy, and others are getting work done under the PSF umbrella, instead of under each specific project's leadership.
I think things were done this way to reduce organizational overhead, but now I'm just speculating.
That has nothing to do with it. There are specific guidelines for accepting a specific organization based on their proposal, their community, their willingness and ability to become involved with the students.
I'm excited to see that someone is working on a high level database API. This will be very useful for hooking up non traditional databases like bigtable or couchDB.
I don't think they're going to do any more abstraction. What you'll be able to do is query quickly in another database. So for example build a web app with access to the company's legacy accounts database or something. No abstractions over schema free DB's.
What is GSoC, the American Idol popularity contest?