So that was 2011

[festive additions/corrections made 21/12; 22/12]

My finger was arguably less close to the pulse this year but this is what registered:

What happened: mesh and MOAP support in SL and OpenSim 0.7.2, Jokaydia leaves SL completely for OpenSim (nooooo, still there, it downsized -- humble apologies), Linden Realms (for promise of extra functionality rather than the game itself), VWBPE11 (great steampunk builds), SL Viewer 3 (FUI configurable interface), Unity3D (special mentions for ReactionGrid Jibe, Tipodean BuiltBuyMe SL/OpenSim viewer), official OpenSim educator email list, Educator Enclave on OSgrid, iED European Chapter inaugural conference in Madrid (notable for realXtend sessions and Daden OPAL), HTML5, Overte Foundation

Apparently no longer with us*: Second Shakespeare/Primtings (now on OSgrid), Sydenham Crystal Palace (also moving to OpenSim), Dresden Art Gallery (from SL), Kirsten's viewer (closing as of 31/12/11), Jacek Antonelli (formerly lead dev on Imprudence/Kokua, still on Plurk), Rezzable (no longer using SL or OpenSim NB demoed OpenSim ST.ART project in Madrid though preferred platform is Unity3D), Bryn Oh's Immersiva (hopefully a temporary glitch), Dusan Writer's Metaverse blog (temporary since Feb 2011), LEGO Universe (closing soon), Teleplace, virtual worlds category in eduBlog awards, and, on a slightly different note, HEA Biosciences.
* I'm using "with" in the sense that they've moved on, not passed away (but let's not forget Steve Jobs)

Enough already: mesh changes everything (apparently not quite yet)

Drumroll...

Highlighted best support for newbie avatars: Linda Kellie, Fleep Tuque, Vanish Seriath (content creators & purveyors), David Deeds (author)
Highlighted best educational tool developer: Nebadon Izumi & Ina Centaur (for the NSF-funded Universal Campus**), Devi
Highlighted best educational sim: Pic du Midi Virtuel on New World Grid; 1939 New York World's Fair on ReactionGrid
Highlighted best developer educational build: Gronstedt Group NYC Emergency Shelter simulation
Highlighted best RL talk on VW: Ilan Tochner at MetaMeets, Patty Rangel at SLCC
Highlighted best inworld talk on VW: Justin Clark-Casey in conversation with Robin Teigland
Highlighted best blog/Twitter: Nalates Urriah (general/techie), John Kirriemuir/VWW (education), NVWN (Robin Teigland & colleagues, innovation/strategy), Ener Hax (building/strategy), Bevan Whitfield (wider metaverse/strategy), Nik Peachey (Web 2.0), Stephen Downes (OLDaily)
Highlighted best conference: VWBPE2011; MetaMeets2011; SLCC2011
Favourite machinima: The Avatar Machine by pallina60 Loon
Grids to watch in 2012: Kitely, MOSES

** While UC is a sim/OAR, I see it as generic edu-themed tool rather than directed at a particular subject (hence the category)

There has been some comment on a far more illustrious blog to the effect that the label "best" in this context is somewhat mean-spirited given the wonderful work done by so many across the wider metaverse. Given my very limited ability to track such efforts, the above represent my impressions, no more, but ultimately I tend to agree with the criticism so don't look for this post in 2012. And well done, everyone! :)