I followed the discussion of this patch on the PG lists.
Tom Lane has rejected this patch because apparently it's not very well done, and because the PG team would rather implement SQL99 hierarchical queries, instead of the Oracle extension (which has its own problems, like its outer join extension).
It was discussed that perhaps an Oracle compatibility syntax would be added to convert to SQL99 syntax. The Oracle syntax is simpler and easier-to-use, but less powerful and generic, like the outer join syntax.