I am more excited for this than I should be. I think having matrix support is a great idea, and will help support making decentralized chat more available to people, even more so since synapse (matrix backend) is difficult to setup/maintain/scale, but ejabbered is light weight, and significantly more accessible for most people to be able to setup.
Just curious, how are you planning on handling encryption. Will there not be encryption support? Will encryption only work between XMPP only and Matrix only?