(I'm not a GOOG shareholder, so their business needs don't matter to me. I _am_ now going to be cut off from my contacts, though. Part of markets is the feedback that comes with mis-steps, and saying "it's just business" does a dis-service to those of us who feel that Google has been over-stepping their bounds.)
The [EEE] strategy's three phases are:
Embrace: Development of software substantially compatible with a competing product,
or implementing a public standard.
Extend: Addition and promotion of features not supported by the competing product
or part of the standard, creating interoperability problems for customers
who try to use the 'simple' standard.
Extinguish: When extensions become a de facto standard because of their dominant
market share, they marginalize competitors that do not or cannot support
the new extensions.
How does this fit in with what Google is doing? Where are their non-standard extensions to XMPP (or RSS, etc) that weren't supported by the competition?XMPP was essentially a non-player before Google used it, and it'll return to being a non-player after they leave. There's no big strategy needed to accomplish this.
This is not to say I support Google's recent decisions, but then again, I had already moved off their applications (Reader and Gmail) way before the shutdowns started, mostly due to the methods used to push Chrome.
Google's extensions to XMPP took place via the XEP process, and were published so other vendors could implement them.
It does not matter if the said modifications are called "G-XMPP" or 'Hangouts'. The result and logic are the same.
The rest is a useless fight on semantics.
SSH is not an extended version of Telnet.
Thats what Hangout does. Name 5 of your friends without a google account who use internet & mobile phones. See what I mean? They were using XMPP. Everyone could talk to them using XMPP. Not anymore. Wanna talk to them? Gotta use hangout, no way around it.
It does not matter if its based on the same _code_ what matter is that it offers the same functionality AND kills off the previous product by using their market share.
That's the freaking concept.
As for XMPP, it was their business decision. I'm betting engineering had a good reason for it, it just may not be shared with us.