The ball is rolling now and any further discussion about it is only hurting GIMP's reputation.
You're going to do what you're going to do. I'm just offering my counsel. Claiming that offering my counsel is "hurting GIMP's reputation" is a hamfisted way of telling me to shut up because you don't like my opinion. Releasing 1.4 as 2.0 will do more to hurt GIMP's reputation than anything I could say about why you shouldn't do so.
As to why PS7 is better: the PS7 features I make the most use of are the better colorspace support, PS7 dynamic brushes, adjustment and effect layers, and the "healing brush".
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