Actually, there are minor differences between the CoreOS of Mac OS X and Darwin (e.g. drivers that Apple doesn't own the source to and so can't OpenSource, etc).
It's not recommended that you replace the entire distro with Darwin, but you can easily recompile the kernel (xnu) and swap it into OS X (this is how someone added support for PPC 604 machines... they recompiled xnu then created a temporary partition and a destination partition, copied the contents of the installer CD to the temporary partition, replaced the kernel so they could boot the cd, then installed it, and replaced the kernel on the final partition).
Darwin is useful by itself as an OS, if a CLI is your cup of tea. Also, X Windows works on it nowadays, and more and more software is being ported... It looks like it could become a viable alternative OS sometime in the future...
The reason Darwin 1.2 took a few weeks after the release of the PB to manifest itself was because Apple had to sever it from Mac OS X and make sure only the source they wanted to release was in it.
Darwin 1.2 is useful if you know how and why to use it. Otherwise, don't worry about it, understand it's there and know that it's definitely A Good Thing.