It isn't Zed complaining, the 1.0 instructions used pip and suggested using virtualenv etc. It would seem he is just reacting to what his customers are telling him - namely that it is difficult getting python to work on their systems and they don't want to play around with pip and virtualenv.
An end-user of an application doesn't want to fiddle around with library management tools.
It's a shame he felt he had to tear out Python. I understand the pain of relying on distro-supported Python. You basically have to target 2.3 at minimum if you want to distribute an application. If you have windows users, it can be even more painful.
Theoretically, couldn't you have configure check your setup for Python 2.x? Setup your make process to download and install the proper python in a local build environment? I'm just running off random ideas, not sure if it would be feasible.
Too late for Mongrel2 of course, but C isn't so bad either.
