Green 'direct injection' diodes may be on the way. I like direct injection diodes primarily for conceptual reasons - they are small and very efficient at converting electricity directly to light. In fact direct injection LDs have the highest quantum efficiencies of any light source - in some cases over 80% of the input power leaves the diode directly as light. This is better than anything out there, including the new efficient LEDs.
See these nlight papers:
http://www.nlight.net/publications.html
Laser diodes are what have made all laser pointers possible. A green DPSS laser is essentially a flash pumped laser, made efficient by the use of the 808nm pump diode which is precisely tuned for maximum absorption by the Nd doped crytal.
Uh, anyway, there are still manufacturers working on green direct injection LDs, primarily for use in compact full color projectors.
In the 90's Sony attempted to create green LDs for the next generation of optical media. They were stymied by very short lifetimes, and eventually gave up. The did get one working at ~515nm, but it only survived about 100 hours. See:
http://www.sony.net/SonyInfo/News/Press_Archive/199601/96D-014E/
Note, this is over 10 years ago now.
Sony's effort was eventually trumped by Nakamura's development of the violet laser diode. The short wavelength allows the highest density of bits to be packed onto a disc. For more on the development of the violet laser diode, see:
http://www.sciencewatch.com/jan-feb2000/sw_jan-feb2000_page3.htm
Recently ROHM announced they've made some advancements in growing stable crystal the may finally allow the development of LDs in the blue AND green part of the spectrum. See:
http://www.rohm.com/news/070201.html