If we continue Modules work here, where does it go? What does it like look when it's finished?

Is it done now? Probably not, but we don't have any process to know when "done" is. The answers are more obvious when you're talking about code and adoption, but here they are aren't.

For instance, your own arguments against AMD suggest that you feel, and I agree, that the basic module format has solidified and, for better or worse, can't be changed at this point in a reverse incompatible manor. But there is nothing stopping those kinds of changes because "finalizing" a CommonJS proposal and getting a version number doesn't really mean much.

So of course people think they should bring up new proposals that break compatibility, why not? The fact that it's unlikely to be adopted isn't a factor here.

Node has solidified it's module format, it won't take breaking changes at this point. Breaking changes still appear to be on the table at CommonJS.

Node is making additions to the API offered for modules based on what the perceived needs of it's users is. That's healthy. Why would they do that here? Why would they listen to stakeholders so far away from their users? CommonJS can't even agree on a good solution to module.exports, why bet the future on node modules on this list? It's not that node doesn't care about interop, it just doesn't think that the best route to it is this list, so they will drive forward on improving modules for their users and consider changes that help interoperability at the behest of those communities (browser frameworks, RingoJS, etc), not CommonJS.

Other implementations seem to be tracking the additions made by node so they are probably doing something right.