We may return to Daala in the long term: it has competitive performance with HEVC on perceptual metrics despite a vastly simpler design than AV1 or even VP9, and despite being less mature than the classic block-based approaches and missing many tools that we simply didn't have a chance to implement (e.g., Daala has only basic MPEG2-style B-frames with no bi-prediction, as just one example).

Like the old adage says, if you have two baseball players who can run to first base in the same time, and one has perfect form while the other one looks lousy, which one do you pick? The guy with lousy form, because teach him the right form...

However, a lot of Daala's design is predicated on having a very constrained legal budget and not being able to rely on anyone else's patents. With the Alliance for Open Media, both of those constraints are relaxed. So even in the best case the result is likely to look pretty different from the way Daala looks today. Ultimately we're interested in making a codec people will actually use, and that means working with our partners.