First off, I'm a bit new to Rx, so take my comments accordingly.
That said, I think that there is a great opportunity for cooperation between INotifyPropertyChanged and Rx's IObservable. I think it's relatively obvious that the UI is built around INPC at this point. However, INPC is also a primary way of detecting changes and managing scenarios where a domain model or view model has interdependencies between objects and properties. It is these interdependencies that seem like good candidates for Rx.
Working with INPC directly is a bit tricky and somewhat painful. Lots of magic strings to deal with. It is also a bit painful to watch for an event on an object multiple levels away in the object tree.
But if I can model these interactions "reactively", then my view models and domain models start to feel a bit more elegant. This is evident in the elegance of projects like Bindable Linq, Continuous Linq, Obtics, etc. These libraries make it simple to create "live values" or "live collections" that update automatically (dare I say "reactively") to changes. Continuous Linq even has a "reactive object" framework to do reactive programming, albeit without Rx.
It seems to me that the synergies come in if we can use Rx to keep the model and view model coherent. Then we can make the "bindable surface" of the model / view model honor the INPC by continuing to raise PropertyChanged as needed. I've seen a couple elegant extension methods that will create an observable from INotifyPropertyChanged. It seems that the other half of this might be to create some infrastructure that translates from Rx back to INPC.