The 'pysh' (aka 'sh') profile does nothing in 0.11 beyond redraw the prompt in a more bash-y way. None of the actually useful bits described in the interactive/shell doc have been updated to the new APIs.
This functionality should be restored.
Thanks for catching this, Min. If nothing else, we should list it in the "Known regressions" section of the 0.11 docs/release notes, since we do know we'll have some regressions that we hope to fix in 0.12-etc.
note added to what's new in 0.11, thanks.
to be more specific on this bug, here's an example of what's missing. the example below would work as expected using ipython --profile=pysh where IPython==0.10, but for 2.3 you will see:
vagrant@toybox[testing]|5> !apt-cache search ipython|head -1
ipython - enhanced interactive Python shell
vagrant@toybox[testing]|6> apt-cache search ipython|head -1
E: Opening configuration file ache - ifstream::ifstream (2: No such file or directory)