I've been using Linux since 1999, I remember when X got the COMPOSITE extension, it was soon after the XFree86->Xorg fork, and after the experimental KDrive stuff from Keith Packard. Then Xgl and AIGLX appeared also.
What I'm saying is that Wayland is interesting, and it makes sense to have it now that we have KMS.
Seriously, what's so bad about client-side decorations? Doesn't client-side decorations allows applications like Google Chrome to draw their own decorations. If it helps applications to draw their own decorations, what's the problem with that? There are people who likes that (me included). They could always implement an off switch to disable it if you don't like.
Also, I don't think nobody is trying to take network transparency away from you. Wayland developers just have other priorities now. And if there is a need for network transparency, it will be done. I don't doubt that.
Have you seen that GTK+3 demo that allows applications to be remotely accessed via HTML5? I know it's not the same, but it's still cool.
http://www.youtube.com/watch?v=AO-qca9ddqg