The big difference that I see between Konfabulator and Dashboard is that Konfab widgets can be integrated [b]into[\b] the desktop, as opposed to being brought up with a keystroke.

I keep my iChat list, IP/Connection, and Weather widgets sunk into my desktop, which it doesn't look like Dashboard will do.

So, yeah. I think there's room for Konfab to move away and improve in a different direction than Dashboard.

But I say that as someone who's used it for less than a week. I like what I see, so far.