Isn't bitcoind the exact same software, but with the "-server" flag?

What I mean to do with a libBitCoin is to make it easier to create bindings for it as well as alternate clients (instead of the wxWidgets one).

This could spur innovation within the BitCoin project (new stuff is easier to try in dynamic languages like Python). An example could be django bitcoin integration, or stuff like that. The last time I checked the RPC API, it seemed rather limited to me.

Moreover, implementing RPC stuff is much easier to do in Python than in C++. That's one of the specific things I was thinking about.