So the rumors were based on fact.

"Some possibilities might include:

• Generating automatic keyword, ad text, URL, and custom reports
• Integrating AdWords data with databases, such as inventory systems
• Developing additional tools and applications to help you manage accounts"

Code samples are provided in Java, C#, XML, PHP and Perl, with more emphasis on the last one. There's a discussion group for developers and a blog, though they're obviously not very busy places yet. They use an interesting quota system to throttle API calls based on ad spending.