Zed editor has significantly improved its Python support by introducing automatic virtual environment detection with a toolchain selector, monorepo support with per-project toolchains tracked via pyproject.toml, and separate language servers per toolchain. The editor now defaults to Basedpyright and supports Ty and Ruff out of the box, with plans to integrate Astral's Ty language server into the core. These changes address previous pain points around venv management and configuration complexity, making Python development more seamless.