Version 1.0 of the IDE does have the nice feature of allowing you to directly access strings from program memory. In particular, compare this:
#include <Streaming.h>
void setup ()
{
Serial.begin (115200);
Serial << "test: " << ("The slythy toves did gyre and gimble in the wabe.") << endl;
}
void loop() {}
... to:
#include <Streaming.h>
void setup ()
{
Serial.begin (115200);
Serial << "test: " << F("The slythy toves did gyre and gimble in the wabe.") << endl;
}
void loop() {}
The addition of the letter F around the string has saved 50 bytes of RAM! And it is hardly much work to do.

Plus, it works with the Streaming library, which is handy for other reasons, like imbedding variables and printing floating-point numbers. For example:
Serial << F("The slythy toves did gyre and gimble in the wabe. ") << 42.42 << endl;