Sanity has prevailed! Great work from the WebKit team, leading the way here. Not to mention great solve on the `color: blue` fiasco. Balances an edge-case compromise nicely, and leaves it open to future improvements. Bravo.
Writing from memory here, please correct as required, but one of the major concerns with scss style syntax was that it was "undesirable" for interpreters to differentiate between tag names and properties due to legacy CSS token-parsing techniques and the performance concerns around "infinite" lookahead ("controversial"). `color` is one example (possibly the only example) of CSS property / tag name overlap which makes the scss style syntax `tag { color:hover { color:blue } }` slightly ambiguous and potentially tricky to parse.
Fwiw, while I deeply appreciate WebKit supporting the proposal as well, the editors of the Nesting spec are Googlers and the Chrome impl happened at the same time.