On the contrary, it means that companies (already deterred by the technical issues) don't even have to bother. It's actually another barrier to entry, only more subtle. It's an incentive not to bother deploying an IdP, which is the adoption I'm talking about and that is necessary to call it "federated". One might liken it to government subsidies for the incumbents in an industry.

There's no "meantime" here - unless a Very Large Social Network adopts this protocol, I suspect the Fallback server will be the IdP most people use.