My understanding reading it is that it’s implementing something more like SolidJS (which is also a no-VDOM reactive library which looks a lot like React) and Qwik (which also serializes/resumes from state in the DOM), but built into the core compiler rather than as a separate library/JSX transform. I doubt it’ll make React obsolete, especially as React expands in scope (e.g. Server Components), but it might be a good replacement for a lot of use cases. It’s certainly got my attention!
No defiantly not an intention to render anything obsolete. I think React will be around for a while.
Instead if you like stricter types, `.map`, and `.push` JSX and want to reduce the runtime abstraction by moving it to compile time then it offers a possible alternative to React. Haven't gone into too much yet but there is a probably a lot of React applications that are too complicated for the optimiser to work :( and there it won't be an alternative.
Lots of great alternatives to React these days as well which I also want to promote!