I think they did the right thing, but I dont really like what John says about not changing the API for the major release 2.0.

With their knowledge, user base and fame they have the oportunity to redefine jQuery v2 completely with the things learned from v1 and everybody would learn it and use it.

Dont let fear to change crush the will to improve and move on. On a major release, one has todo what it has to do.