With 3.1, status updates seems improved a lot, what i want to suggest is maybe it can work with a url shortener service or even use it's own basic one?

You can write your own modules, so you can do this if you wanted to. I don't see the value of adding a 'local' one in house. h ttp://community.invisionpower.com/short/Jh4 isn't really that short. :D