That's why I don't think it was more than a fig leaf for Google's true reasons for closing up their chat network. That was during the period where they were axing anything trying out-Facebook Facebook and I wouldn't trust the stated rationale for any of those decisions.
It would be interesting to see whether Facebook/WhatsApp and iMessage have made them desperate enough to reverse course on XMPP but I'm skeptical that they'd be trusted enough to be successful.