0.1.1 is just a tweak to support the additional functionality of libow 0.2.
Keymgr is a cryptographic policy engine. Or at least, it will be. Currently, it is best thought of as ssh-agent on crack. Like ssh-agent, you can feed it your RSA keys, and it will take care of handling your ssh authentications - both direct and proxied via agent forwarding.
Unlike ssh-agent, it gives you a little bit more control over things. Well... in theory. Version 0.1 doesn't do terribly much for you - you have the choice of either always on behaviour, like ssh-agent, or always query behaviour, if you've enabled the GTK console. The query behaviour just pops up a dialog for each authentication, letting you click yes or no.
It also, with the assistance of libow, can use a Dallas Semiconductor Java Ring for secure key storage and authentication. The steps required to achieve this, however, are a little on the convoluted side. Read more about integrating Java iButtons with keymgr here.