It's really exciting to see the framework thriving the way it is. Hopefully the recent uptake will mean an even brighter future for the community and the team.
I kind of feel like Resig is misunderstanding what embrace and extend usually mean. (Or at least, glossing over it.)
I kind of imagine it more like that Java debacle where Microsoft installed a version of Java but never updated it, severely retarding the growth of the language and basically killing off the "original" web application sphere...
In Microsoft's case, their strategy was "embrace, extend, and extinguish". I doubt Microsoft wants to "extinguish" jQuery. Why would they care? jQuery isn't a threat.
