[waps]

Jabber support, in the sense of any client being able to connect to google talk, is perfectly active, hell I've got it open on my desktop right now.

Federation, the ability for having your own jabber network contactable by google talk users and vice-versa, that was (partially) turned off, after a string of spam abuses.

[pyre]

IIRC, using XMPP is going through the legacy "Google Talk" infrastructure which they want to axe in favor of Google+ Hangouts.

[cbsmith]

They actually temporarily broke Jabber support and then put it back on when people freaked out. I have noticed though that when I have hangouts conversations they don't seem to make it to my Jabber client...

[jadyoyster]

They are probably going to scrap Google Talk. Even now you can't participate in group chats on Hangouts over XMPP which is hugely annoying.