It sounds like they are giving the coins to Gavin, and allowing him to decide what to do with him.  I like that idea the best.  He's reaching out to us to ask us what we want to do with them.

So Gavin, I would say use the majority of the new coins - maybe 75% for bitcoin client/community development.  We need lots of work on the client, so why not let those working on it get rewarded in bitcoins?  This seems to make the most sense!

Then 25% for the faucet.  I like the faucet and it's really cool.  But it is only pennies for new people.  The idea of someone giving away free money is really nice, so we should keep it going.  It's good karma