Well, this sums it up. Got this from Jane Wells which is the complete message Andrea_R linked to.

To anyone from the 3 am discussion: what Matt said in his keynote is that WP and MU would be merged, so that multiple blogs would be an option right in WordPress. No timeline given. Separately, later in the talk, he did a preview of new wordpress.org profiles, which will be the first step in bringing BuddyPress to the project as a communication tool. If Lorelle or anyone is reporting that he announced/meant MU was coming to wordpress.org the site, that's not correct. There will be a post (or series of them, depending on how long they turn out to be) on the dev blog within the week, summarizing everything Matt said.