I think the CM7 nightlies would depend on whether the updates completely overwrote the ROM or it they were just updates.
As to ICS its more of a novelty for our phones. Technically they have the power to run it but the GPU isnt supported or powerful enough (not sure which) to support the cool 3D stuff of ICS.
When it comes to the kernel do we actually need a specially cooked kernel or will the stock one do it for us?
Joban just a side thought it might be a good idea to start a new thread for the .35 kernel if you're thinking of cooking up a sweet kernel for us, being that we are already up to almost 80 pages worth of post and a whole bunch of them have little to do with the new source.