My thoughts precisely.
The code is still out there though - just waiting for someone to pick up where Google left off. . .
http://incubator.apache.org/wave/about.html
My plan is to try to rewrite this as a sharepoint add in, so that all those companies who install sharepoint as their "solution to everything" get something good with it; that could help grow the user base / promote belief in the technology. Then it could be openned out into allowing people to connect to hosted public services, and eventually get back to Google's original vision.
ps. In honour of the subject matter, perhaps we should be calling it Google Duality?