Summary if you don't know the story: aaronsw wrote web.py, founded Infogami (yc funded) and merged with Reddit. Then he had a falling out with spez and kn0thing (original founders of Reddit). When Reddit was rewritten, web.py was not used.
I personally like web.py. Any of you using it for your startup/projects? (May be we can swap tips) If you are not using web.py for a particular reason, can you please share that too?
I've been using web.py for about a month for a small side project. I like it very much, but there are some pretty big things that are missing. Like, having to write a GET handler to serve images, for instance.
If you keep your images (and CSS, and Javascript) in a /static directory, the built-in webserver will serve them automatically. When you deploy to production you can setup aliases in your HTTP conf to handle it.