Version 3.0 is out, and it has a number of items that have been on users' wishlists.
Perhaps the most-requested of these is 256-color ANSI support. Telnet negotiation has also been greatly improved, which should result in better server compatibility, especially with MUDs. Triggers can now spawn their own windows, allowing chat channels, pages, and whispers to be separated and decluttered from the main window. Once you try it you'll wonder how you ever got along without it. Last, but not least, the main UI has gotten some spit and polish, including larger, easier-to-read icons.
Hope you enjoy, and as always, bug reports and feature requests are welcome on the Chrome Web Store page. If you're reporting a server compatibility issue, please indicate what server you're seeing the problem on; there's a huge variety of MUD servers out there and all of them behave a little differently.