Embryonic stem cells need not apply
Stanford researchers have turned normal skin fibroblasts from mice into functioning nerve cells without reverting them back to an embryonic-like state. The biological shortcut demonstrated in this experiment and others shows that this process could be used instead of using embryonic stem cells or reverting cells into induced-pluripotent stem cells (iPSC).
According to a January 2010 physorg.com article, "The finding could revolutionize the future of human stem cell therapy and recast our understanding of how cells choose and maintain their specialties in the body."