Reading old papers from Nelson, Engelbart, or Bush is a lot of fun, though it can sometimes take a little work to get into a pre-internet headspace. I don't read very many authors these days who are attempting to rethink fundamental computer interface concepts like that, though there are a few.
Is it? Was Tim Berners-Lee influences by Project Xanadu? Was he aware at all?
In essence, Ted Nelson (and Vannevar Bush) are referenced in the "History" section, and also for coining the term "Hypertext", but not from the "Technical" [2] and "Standards" [3] sections.
[1]: http://info.cern.ch/hypertext/WWW/TheProject.html
Earlier discussion: https://news.ycombinator.com/item?id=15269827
A famous (and infamous) article, "The Curse of Xanadu", on "the longest-running vaporware project in the history of computing, a 30-year saga of rabid prototyping and heart-slashing despair" (now closer to 50 years and counting): https://www.wired.com/1995/06/xanadu/
I don't think I'd actually clicked through and seen this demo before, though, which adds some interesting new objections to it on my end -- I find the user experience here ugly and cryptic. I'm sure a much nicer one with these ideas could be made, but it seems oddly telling that Xanadu's proponents think this -- and the Xanadu web site in general -- are great ways to sell the ideas.
If the system is working correctly, you should always be able to follow transcluded quotations back to their original primary source - that is one of the most fundamental design principles. Conversely, the rightsholder of a document should be able to see where their work is being quoted.
Xanadu has a lot of interesting ideas and Nelson is a visionary, though the idea to visually link works just doesn't work. However, transclusion is an important idea, that is critical for Wikipedia's style of evolution, and will be important as Wikidata and other linked data (semantic web) applications get off the ground.
However, the vast majority of the web consists of cheap short cut web sites that aren't much different than dial up systems. AKA start up money grabbing culture trying to carve up every little idea into a unicorn. And once they start carving things up, they sure don't want to collapse it and help create the semantic web, except privately behind the scenes, in creepy surveillance capitalist and other centralizing projects.
The link goes to an example. The front page of the site says the following, whish doesn't help much:
The computer world is not just technicality and razzle-dazzle. It is a continual war over software politics and paradigms. With ideas which are still radical, WE FIGHT ON.
We hope for vindication, the last laugh, and recognition as an additional standard-- electronic documents with visible connections.
We propose a new kind of writing-- PARALLEL PAGES, VISIBLY CONNECTED.