Disclaimer: I'm an amateur in every sense of the word but eager to learn. A Craigslist API could make for some really cool mashups but many of those could probably also be created using the RSS feeds they provide. Do you see any substantial advantage to a distinct Craigslist API?
There was a mashup that did something with Craigslist and photos, but Craigslist shut them down. I think it allowed you to view the listing with the photos in it (rather than needing to click on each listing to see the photos).