An obvious first thought in my mind ... either (1) SharePoint cannot address the needs of this group or (2) it's not scalable/extensible enough or (3) it does not satisfy the emphasis on web standards or (4) Oxite is more of a one-off effort without a need to "eat your own dogfood" so to speak (align with other product group strategies, etc)...
Today, my team has released Oxite. Oxite is an open source, standards compliant, and highly extensible content management platform that can run anything from blogs to big web sites. We are releasing this as our second edition of the Mix Online web magazine that focusses on web standards.
Supporting Web Standards With Microsoft : Jeff Sandquist - Microsoft Evangelist

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