Version 0.7 of the Sakai AppBuilder is finally to a point where I am ready to inflict it on other people. It took awhile to get the Velocity templates to a point where I was happy with them. More info about the plugin itself and installing it is available on the website.
I am also excited to say that we now have an "official" eclipse update site that is part of the Sakai project (plus the update site should be working again, we broke it with version 0.6). Here is the link to put in eclipse for the update site (installation instructions at the link above):
Hope this is helpful for everyone who uses it and please send me feedback about it so I can improve it.