Ever since Display Suite came out, people always thought it was a competitor for Panels, which really isn't the case. I'm not going into that debate, both me and merlinofchaos know the facts. I've got better news instead. Apart from the fact that Panel layouts are already available through the Field UI, the Panel editor can now be used as well. That's right, if you are a Panels/Page manager user, you can now use that interface to manage the layout of any view mode of any entity in your Drupal 7 installation. Drupal display managemement just got slick!
The code is available in the 7.x-1.x version of Display suite as a submodule called Panel view modes. This is a call for testers to play around with the initial implementation to make sure this works well. Post features, bugs into the issue queue. Make sure you have the latest dev versions installed of CTools, Panels and Display Suite and post as much debug information and/or steps to reproduce for any problem you might find.In the meantime, you can drool over the screencast, the real magic starts around 1:35 :)