In my opinion this weakens both projects. As the ultimate goal seems to be to build a new framework based on the two, this means that every code you write today using on of those frameworks will be legacy code soon.
Well, by some definition of legacy, that's always true. If we are learning, using better techniques, and writing better software every day what we wrote yesterday will be "legacy" code... But I don't think that matters, ther will be upgrade paths, support for pylons 1 and tg2, and more cooperation and focus in the development team.
