I agree. They stumbled initially because the "hello world" JavaScript output was something huge (17,000 LOC if I remember correctly.) But I think they are recovering nicely and people will notice.
That was unfortunate, mostly because a single compiler flag brought the code base way down, smaller the JQuery. If I recall correctly, that mistake was from a blogger, not Google, but it caught the bad publicity winds. Somebody was more eager to tear it apart than learn the tools.