KDE4 != KDE4.0.0. Or 4.0.1, or .2, or whatever Fedora 9 felt like shipping with.
Linus gave up on KDE 4.0.x, because he's a kernel developer, not a desktop developer. pretty much everyone involved with KDE made it perfectly clear that 4.0.x was not aimed for desktop users (which, at least in this context, is what Linus is), and was not a suitable replacement for 3.5.x.
I think the guy who mentioned blondes and brunettes had the right idea - why is this news?