I thought everybody already knew about this - it was all over the tech news sites, and has been mentioned in The Guardian.
El Reg's report is nearly three weeks old.
There are a number of limitations: for example it doesn't actually include the PAF (Postal Address File) data, so it mainly just maps post codes to latitude and longitude; this information is already available via sources such as Yahoo's GeoPlanet API, which draws on this data via a legitimate licence.
More importantly, many people are reluctant to use it for anything that may draw attention to them because of the strong likelihood that there is poisoned data in there: information that is incorrect, doesn't impede the normal use of the dataset, yet can be used to prove theft of copyrighted material. Cartographers commonly use such techniques - a kink in a river, or a small copse, that don't actually exist; the A-Z people include non-existent footpaths or cul-de-sacs on their maps so they can prove that somebody has copied their data without attribution and the associated licensing fees. Dictionaries also often include non-existent words.
So although it's nice to have in terms of the curiosity value, if you intend to build something other than for your own enjoyment then you might be better off using one of the free APIs that already offer this data (and have integrated it with much larger datasets), or just licensing it yourself.
I'll have a play with it for my own entertainment, but I'm not seeing anything in there that I don't already get for free from other legitimate sources.