Inasmuch as that was always the plan, the XSL-FO 2.0 Working Draft published yesterday (latest version always at http://www.w3.org/TR/xslfo20/) is the first to incorporate new FOs and properties from the previous “Design Notes” document into the text from the XSL 1.1 Recommendation. The new WD also features more extensive linking from FO, property, and function references to their definitions.
Dave Pawson is the editor of the new Working Draft, though everybody on the Working Group contributed both to the new FOs and properties and to the editing.
There are still more FOs and properties from the “Design Notes” to be included in the next version, plus I would expect more new FOs and properties to be defined between now and then. In the meantime, it’s still possible to raise or comment on issues in the W3C Bugzilla to do with the current WD, the previous “Design Notes”, the XSL-FO 2.0 Requirements, or even errata for XSL 1.1. See http://www.w3.org/XML/2008/xsl-fo-bugzilla.html for instructions on using Bugzilla to report XSL-FO issues.
This WD is also the first publication from the W3C XML Print and Page Layout Working Group that was chartered earlier this year to take over the work of the XSL Formatting Objects Sub-Group of the XSL Working Group.