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With the latest daily (build 200802270005) and g&g plugin (Version 1.1, Source Latest Development Build) the New Project dialog only lists "Grails Application" as Project type for category Groovy.
Created attachment 57509 [details] Screenshot of the New Project Dialog
Yes, it was removed from build. Java SE project should be used instead, but true is that there is no support from Groovy yet, so it will require some hacking of build.xml to call groovyc. Anyway, better integration is coming soon. Do you really need standalone Groovy project?
No, I don't need this particular type of project. I just noticed the difference and thought it might be a bug.