The Opie 1.2.3 release has been delayed - we are currently looking into some issues around recently added Bluetooth support, namely that it's somewhat broken. Hopefully these issues will be sorted out soon since there's a fair bit of useful stuff in the release.
The version of Konqueror Embedded for Opie in Familiar is from 2003, and since it has sat unmaintained for so long I had figured that was it. It turns out that a company called basysKom, who you may well have heard of since it is staffed by several KDE developers, has released an updated version just recently including most interestingly a version backported to Qt 2.x. It's not quite compatible with Opie out of the box since they are targeting Qtopia 2.0, but it's close. I have started trying to hack it to work with Opie, and if you are interested you can keep up with progress by monitoring the KonquerorEmbedded2007 page on the Opie wiki (you can even subscribe to the page so you get emails about changes if you want). Better still, grab the source and the patch and give me a hand :)
I've just signed up to be a mentor in the Google Summer of Code for Opie (under handhelds.org). If you're a student interested in working on Opie or something else handhelds-related under the handhelds.org banner, please have a look at this page and start thinking about what you might like to do. There are a bunch of suggestions up there but we'd love to hear any new ideas so please let us know if you have any.