In other words, W3C missed the boat on this. I don't think it's to their great credit that they joined a three-year-old effort after it was already clear that the whole industry was headed towards HTML5 and not XHTML.
After it was clear how useful HTML5 was, the W3C was dragged into participation, but unlike W3C standards, HTML5 continued on with it's open development model where discussion takes place in the open.
The W3C has not contributed the idea, the execution, the prolitical process, or the people to HTML5, and HTML5 is a W3C standard by label only. If you look at the other standards the W3C creates, you'll see a pattern where standards are developed in isolation behind closed doors and without implementations, in direct contrast to any useable and useful standard such as HTML5. RDF, OWL, SVG, all abominations that seem to exist to hold back others from making reasonable and useful replacements.