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Frankly, I believe that the method by which Frame combines the type definition with print rules (the "EDD" in Frame-speak) is at one time a strength (limits writers' ability to mess up the design *too* much, and makes dealing with structured writing easier to learn) and a weakness (too difficult to use arbitrary type definitions when a variety are needed in an organization).
As Andrew points out, software is but a tool; we become too often attached to some long after they reach albatross status. In some ways, Frame is like that (although at the moment, I believe it is still often the best available tool for documentation use!).
Whether the long document prowess can transfer to the InDesign code base has yet to be seen, I believe. Given the tremendous transformation from versions 1.5 to 2.0 in the product, I am hesitatant to think it will not be feasible.
However, unless another product appears in the interim, I don't believe that Adobe will lose more clients from Frame *than they already are losing* (mostly to more XML-centered tools like Arbortext Epic, I believe). The largest difficulty will be in luring existing Frame customers to switch to InDesign.
Without any pipelines into Adobe myself at the moment, I believe what is happening is that Frame being offshored is to serve several functions: to reduce costs in keeping the product updated while allowing their existing programmers inhouse to work on, among other things, the InDesign development. Since the existing folks understand the long document needs, this infusion of talent into the InDesign team (if, in fact, I am right--remember this is pure speculation on my part!) may hasten the transition.
>From what I have seen so far, if this is a correct speculation, the resulting product if successful could replace the need for most add-on products such as WWP or Mustang with little effort. Now *that* would be a value proposition that would be hard to beat in the marketplace, well beyond their present product selection.
Let us hope that Adobe is thinking along these lines--for Frame may continue to evolve while the efforts regarding InDesign are ongoing.
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