I believe that it has now made it into trunk, see the NEWS file in grub trunk:
New in 1.98 - 2010-03-06:
* Graphical menu support.

I am currently trying to get a theme to be selected in 1.99, however
even after setting GRUB_THEME in /etc/default/grub and update-grub
successfully finding the theme, it doesn't show at boot :/

I would love to make an official desktop/netbook theme in compliance
with Ubuntu/Canonical branding standards - however i dont think it would
be appropriate to include a logo/brand-mark by default as Grub foots
into more than just Ubuntu - any thoughts?

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https://bugs.launchpad.net/bugs/385714

Title:
  GRUB2 Theme for Ubuntu

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