Inactive
How many times do we search for a plugin to install only to be presented with a list of plugins that will obviously not work with the currently installed version?
Let's allow the search results to only show relevant, compatible results — maybe even filtering and sorting based on Rating and Freshness — for your install version of WordPress.
Lead Plugin Wrangler
Ratings and freshness are, IIRC, in the works.
However. Remember that just because a plugin says 'tested up to 3.1' doesn't mean in won't work on 3.3
Inactive
There is a plugin that checks for compatibility, but only for the ones you've installed. Check it out: http://wordpress.org/extend/plugins/better-plugin-compatibility-control/
But I still like your idea a lot.
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