The W3C describes it as:
The flower-like structure of the SVG logo evokes creativity and growth, while the connected nodes indicate integration with other technologies.
The logo was based off a design by Harvey Rayner. According to the W3C:
It was selected by the SVG Working Group from among hundreds of entries in a contest conducted in 2006 by supporters and vendors of the SVG format.
It's a very symbolic representation of an otherwise difficult technology to sum up in an image. I'd say it's a decent fit, but the version without text might confuse people.
What do you think of the SVG logo? Have you seen it used anywhere? I have to be honest, I'm on the Internet quite a bit and only stumbled across this yesterday. I wonder what other cool logos I'm missing out on.