I am most encouraged by the news that Elizabeth Strout's Olive Kitteridge has won the 2009 Pulitzer Prize for Fiction. I haven't yet read the book, but knowing that a "novel in stories" can earn such a high honor gives me great hope for the form that I have (however accidentally) chosen for my own.
I didn't really know it until my wife pointed it out to me recently, but the novel I've been working on for five years or so is a work that very much straddles the line between short story collection and novel. I set out to craft a pretty traditional work, but the short story writer in me seems to have taken over, and each chapter really does stand on its own at this point.
Have you read (m)any collections of linked short fiction? Have you read other novels that felt like the ones I've described above? Drop a note in the comments section, and let me know.