The fact that Xtend can be easily translated to Java source code is a big sign that it probably won't have any dramatic impact on your productivity. I think the comparison that has been made between Xtend and Coffeescript is most accurate. Xtend will likely be more pleasant to work in than Java, but it won't be a game changer in terms of what you can accomplish with it. Still many people are happy with Coffeescript, and if Xtend does thing right many people might be happy with it as well.
And, I'm pretty sure David Pollak is the only Scala evangelist who is worried Scala won't or shouldn't overtake Java. Everyone else seems to be committed to making Scala a better and better out-of-the-box experience, and there continues to be initiatives and commercial investment in improving things like IDE support, documentation, coding standards, training opportunities, and more.