I don't speak for the team but I believe I can add some perspective. Think of it this way: what is GWT? GWT os compiling Java, a statically typed language, into Javascript. If you've used GWT you'll know that particularly early on there was a lot of friction. What's simple in Javascript with anonymous objects and duck typing doesn't quite gel with Java so you've had to do things like use JSNI for edge cases. Google h…
IMHO, this is not a "break away" approach as originally indicated in the leaked memo. One of the biggest pain point in web dev is the inconsistent DOM implementations. I was imagining some sort of DOM-less, HTML5 Canvas-based UI controls. And something about the "Web", Semantic Web/URIs or a new approach to programming on Web. This is NOT a break away language in any sense - its more re-packaging.
The engineer that wrote the memo needed people for his team. To get people to join a team from any of the others at Google, you need to convince them that your team is awesome to work with. At Google, you can't offer more money/benefits, so it has to be a "join us and you'll change the world!" message. That's going to lead to a lot of overblown statements that may or may not end up being true, and may or may not even be believed by the author.
Google is not in the business of doing things that are bad for the web (and when they have done, there's been an about-face, see: Google Video shutdown), even if internal machinations might make it seem that way.