In War Times by Kathleen Ann Goonan
This actually looks like a sane, solid choice; the reviews that I’ve seen have ranged from mixed to positively glowing (although see also). Anyway, I have a copy, and I’ve bumped it up the TBR stack, so there may be a review in the near-ish future.
UPDATE: Chris Mckitterick reports that Michael Chabon’s The Yiddish Policemen’s Union came second, and The Execution Channel came third.
Meanwhile, the Sturgeon Award choices are equally solid — choices because, for the first time, there are joint winners, and solid because those winners are: