The main reason we won't list it on privacyguides.org is the encryption is not always on by default.
There are two major problems, the implementations and the fact the spec isn't specific. I'm not particularly bothered by the imaginary, the dude is a furry what do you expect? Some furry bloggers do have pictures throughout their blog posts to split things up and lighten things.
As for the reply from the spec author, I had a negative opinion of that. To me it looks like they just tried to copy signal's encryption so that people could claim that XMPP has E2EE, without any real design or thought of the implementation.
One of the other things I hate about XMPP (and you mentioned it above with the jingle debacle), but there are other cases where there's multiple XEPs for the same thing. Some of them are widely used despite being marked as "experimental". The documents are not cohesive and is a mess which is probably why the implementations are also bad (unlike the Matrix spec). Encryption is just another one of those things, just like file transfer.
If I was deciding on a new project to develop a client for XMPP would be the least attractive project for me to work on. Put it that way. Without enthusiastic developers that think this thing sounds cool there simply won't be any good software.
The other thing also not mentioned is that the OMEMO encryption only applies to text messages and not all the other things, ie VOIP, status changes etc.
There is a fair bit of metadata on the server side
https://web.archive.org/web/20211215132539/https://infosec-h...
and attacks like this are just downright scary
https://notes.valdikss.org.ru/jabber.ru-mitm/
I used to use XMPP but haven't in about a decade. Nobody I know uses it either. (Even the couple of evangelists I knew moved to Matrix long ago)