Although the Reg sensationalizes the story, it's interesting to see how Ruby is in limbo. How much damage has been done to Merb by the 1.8 to 1.9 fiasco?
Let's say that many folks might have had higher expectations that have been hard to meet given the reality of it all.
The Merb guys helped with further explorations themselves which probably helped with making Rails advance more decisively, given the promissed "merging" of the Merb ideals with Rails.
Also, with things like Passenger, the deployment of Ruby met an all-time high in features.