I don't think it's a case of "running scared". I think it's a case of trying to learn from JSON how much could be achieved with something much simpler than we have today, but without losing the things we really value about XML.
I think we need to focus on the greatest need. I considered responding to the earlier "hysteria" comment by saying that most folks on this thread, and certainly James Clark's post were not "running scared" of JSON. For my part, I embrace it, and I know quite a few others do who still want XML to be simplified.