Dave suggests that W3C use RSS 2.0 as the basis for their syndicated data activities. I think W3C should do just that if they really want to do something in the syndicated data space.
I realize that this will lead to another clash between RSS and Atom, this time with a major standard organizations behind each, but conflicts between standard organizations have happened before and will happen again.
Competing standards and competing standards organizations? Sounds like a good idea to me. I think Don is pointing to a good way forward -- no one has to feel hurt (W3C) and no one has to give up an existing standard (RSS).
To me, Atom continues to be much more than "just" syndication, or "just" the web, so the IETF is the best place for it to be. RSS is very closely tied to both the web and syndication, so the W3C is it's logical companion.