http://www.artima.com/weblogs/viewpost.jsp?thread=98196
What's interesting is the reasons he gives:
"Why drop lambda? Most Python users are unfamiliar with Lisp or Scheme, so the name is confusing; also, there is a widespread misunderstanding that lambda can do things that a nested function can't -- I still recall Laura Creighton's Aha!-erlebnis after I showed her there was no difference! Even with a better name, I think having the two choices side-by-side just requires programmers to think about making a choice that's irrelevant for their program; not having the choice streamlines the thought process."
Basically he wants to dumb down the language to make it more appealing to the mainstream programmer crowd. He wants another java. In the end, I think that mentality is a death sentence for the language.