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Ninecows has released The Putney v2.0 (.zip download link), a freeware architectural replica (SynthEdit) of the EMS Putney. The plug-in runs as a VST effect, not a VST instrument.
Description:
As the original it is constructed of basic modules connected in a matrix, letting you route sources and control voltages to different destinations. Many module based synths [...]

The iAno is - you guessed it - a virtual piano for the iPhone.
This is available now as a free download for jailbroken iPhones. Let’s hope that when Apple officially opens up the iPhone to developers that they let everybody get at this sort of delightful weirdness.
Features

A complete four octave keyboard.
Multi-touch. Up to 5 [...]

Blu Gruv has released Prophanity, a freeware Windows VST version of the Prophet 5.
Features:

Oscillator A: Frequency, Osc Waveform (Saw/Square), Pulse Width, Sync.
Oscillator B: Frequency, Fine, Osc Waveform (Saw/Triangle/Square), Pulse Width, Low Freq, Keyboard.
Mixer: Osc A, Osc B, Noise.
Poly-Mod: Sources - Filter envelope, Osc B; Desinations - Freq A, PW A, Filter.
Wheel-Mod: Source mix (LFO/Noise).
LFO: Frequency, Waveform [...]

The Morrison Digital Trumpet, or MDT, is a new brass-style MIDI wind controller designed by Steve Marshall with Australian multi-instrumentalist James Morrison.
The MDT is a MIDI wind controller designed to make it as easy as possible to transition from the regular trumpet. For trumpeters, your hand position will be very similar to what you’re used [...]

Winter NAMM Show Update: Garritan’s new Virtual Pipe Organs collection is designed to capture the grandeur of a variety of different historic and contemporary pipe organs:

a Small (Early) Baroque Organ (circa 1740);
a Late Baroque organ (”Bach”— circa 1748);
a Gothic organ; a Renaissance organ (one of Europe’s oldest circa 1587);
a Romantic organ (circa late 1800’s); and
two [...]

NAMM Show: EastWest has released the Fab Four Virtual Instrument - and unauthorized collection of virtual instruments based on the same kind of instruments and recording equipment used by the Beatles to create their music.
I was able to check Fab Four out on the show floor, and it sounds like they’ve done a great job [...]

Namm Show Update: Applied Acoustics Systems introduced Strum Acoustic GS-1, an acoustic guitar software synthesizer that they describe as the keyboardists’ acoustic guitar.
Strum provides a collection of steel and nylon acoustic guitars and includes elaborate voicing and strumming modules for the realistic reproduction of a guitarist’s playing techniques. Chords played on the keyboard are automatically [...]

Vir2 Instruments has introduced two new virtual instruments - Elite Orchestral Percussion and BASiS.
Elite Orchestral Percussion offers 19 gigabytes of sterling orchestral percussion with a sophisticated script engine, and BASiS fills the low end with a large collection of electric, upright, fretless, and synth basses.
Elite Orchestral Percussion
Vir2 Instruments’ Elite Orchestral Percussion is a  19GB library [...]

Winter NAMM Show: Digidesign announced updates Hybrid, its high-definition synthesizer, and Strike, its virtual drummer plug-in.
Hybrid Version 1.5 offers a number of important new features, as well as a vast increase in the program’s already wide sonic palette. Boasting an entirely new VCF (Voltage Controlled Filter) vintage filter, this plug-in update makes it easier than [...]

Soundware and software distributor ILIO has announced a interesting program with hard drive maker Glyph Technologies to offer hard disk pre-installed with virtual instruments.
ILIO’s G-TIP (Glyph–Turnkey Installation Program) packages will include virtual instrument software from Vienna Symphonic Library and Synthogy pre-installed on Glyph hard drives. Purchasers of these packages may register their software with the [...]

EastWest intro’d Quantum Leap Pianos, a detailed collection of some of the world’s finest grand pianos.
Description: 
More than half a million dollars’ worth of pianos are included in this collection, all meticulously recorded by EastWest/Quantum Leap producers Doug Rogers and Nick Phoenix. These include a $225,000 Bechstein D-280 Concert Grand. Other pianos featured in the library [...]

Clavia has released the Nord Wave Manager, an application that allows Nord Wave users to create Sample Instruments from any standard audio file and download these to the Nord Wave synthesizer through its USB interface.
Highlights:

Creates mono or stereo samples from an audio file (.wav format)
Easy to map samples across a keyboard range
Graphical interface for setting [...]

Musicians used to worry about getting replaced by synths, but they got over it.
But that was before Elhardt started creating hyper-realistic orchestral simulations like this:

AlgoMusic and BK Synthlabs have teamed up to produce a new line of virtual instruments, including Enceladus v2 (Next Mission) and ElectraBass v1.1.
Enceladus retails for 49.99, and ElectraBass for 35.00.
You can preview both VST’s below.
Enceladus V2 (Next Mission)
Enceladus, above, is inspired by one of the many moons orbiting the ringed planet Saturn and brought to [...]

Musicrow has introduced Magic Vox, a vst that uses the sonic qualities of guitar harmonics (flageolets) as a basis for the creation of a playable and expressive musical instrument with a distinctive sound.
You can preview the capabilities of Magic Vox below:
Description: 
Twelve of the best sounding guitars were selected for this mission and carefully sampled the [...]