I have spent the last few years working on a new, minimalist, 0-magic Python web framework. It is still not done, but I have used the template language in production environments and it is a pleasure to work with. I want to release that separately today.
I have used Django Templates, Rails ERB, PSP, and many other template languages. Weby Templates have the advantages of simplicity and flexibility.
Blog and docs:
http://www.jperla.com/blog/2010/08/15/weby-templates-are-easier-faster-and-more-flexible
Repository:
http://github.com/jperla/weby-templates