You can read about it here,
perhaps Digg it here,
and read the mailing list here.
You can look at the release schedule of Fedora 7 here
I personally think the merge is a good thing to do, because one of its advantages is that it makes it easier to manage and install packages because there will be only one main repo, instead of 2 (Core and Extras) or 3 (if you count together the Updates repo ) repositories. (It'll also makes me easier to mirror the repo for use inside my university)
However, this announcement left me wondering with one question. How will users get the distribution release?. Core and Extras is now together as one repo, so are we going to have CD/DVD with everything in the repo as the distribution release???. Or are we going to have a smaller 1 CD base installation for Fedora??. Or does the FedoraProject have other method in mind??.
Anybody care to enlighten me about it????