Recently, I've participated in many discussions about the current state of market acceptance of Extreme Programming and Agile Software Development. I've spoken to people from various European countries doing (covert or overt) various flavours Agile (SCRUM, Lean Software Develoment, Extreme Programming) in Banks, Insurance companies, even a very non-agile national postal service and a big moloch like Logica/CMG . So it is no longer a few small projects in small pockets. It seems XP and Agile might be crossing the chasm into the mainstream, and become synomous with 'software development' within a couple of years. Other signs I see:

• Ponderings about 'what is the definition of...' Extreme Programming (on the XP mailing list) , Project, Agile, Leadership etcetera.
• DSDM and RUP have now adopted Extreme Programming, so there seems to grow consensus on what constitutes sound agile programming practices, as well as a growing chance of wider adoption of these practices. In many places SCRUM and XP are also combined.
• The number of conferences on agile is growing rapidly, besides XP2004, OT2004, Agile Universe, there is now also the agile development conference, xp days in the UK, Germany and the Benelux.
• Other conferences are adopting agile, as well as agile session formats. Yesterday I stumbled across Software Development Expo, they have experientials (highly interactive workshops) and an open space conference, as well as a track on People, Projects and Teams.
• The agile community in europe is both starting to face more outward (organising Agile Special Interest Groups to inform managers and software customers) and pulling together (keeping each other up to date on various events).

I'll continue collecting some more signs, If you see some, let me know yours!