As for the OP - the transition/migration plan hasn't changed, and I'm personally sorry he feels burned, but Python 2.7 has always been on the roadmap for release. Our goal has been to make the 2.x series evolve into a gentle ramp into Python 3 as humanly possible.
The best way I've heard it put - use Python 3 if you can, Python 2 if you must.
The Core Team's work is a dream for maintaining my various Python code.
Python 2.x is so solid, I'm still relying on 2.5 but I'll definitely go freshen everything up for 2.7 (if only to get rid of my hand-rolled ordered dict implementations).
I tinker with 3 on new projects and am looking forward to using it more, but don't at all mind the reasoned thought and caution applied by all before trying to use it everywhere.
I'm betting someone will pick up the torch long after the core developers give up support. They want everyone to migrate to 3.1, but it's still highly unfeasible.
So perhaps one day 2.x will eventually pass on, but I don't foresee it happening within the next 3-5 years.