Seems Google has enabled the canvas view on the iGoogle sandbox for developers. The new sandbox looks rather promising, it includes a new Gmail gadget which lets you read emails from within iGoogle, sadly you can't compose with iGoogle, but the improvements to reading are much appreciated.

http://img146.imageshack.us/img146/1650/gmail2ab8.jpg

You can also use Google Reader from within iGoogle. but through a roundabout way. I had to add a feed to iGoogle, view it in canvas view and then select "All Items" from the drop down.

http://img152.imageshack.us/img152/7359/imageoo2.jpg

Could this finally be evidence of the product consolidation Google set as an aim several years back?