I downloaded the latest Blogs MU Theme, version 1.2.2 which became available last night (Jan 1, 2011).
I noted that the child theme had been moved inside the parent per the revision notes.
What I was concerned about was that I didn't find readme.html, license.txt, install-readme.txt, bp-global-adminbar-css.php, etc in the new version.
I did find an install.txt file under lib/docs, but the instructions in this file still refer to a child theme so it appears to be old.
Was there a problem in the packaging of version 1.2.2 of the theme in the zip file?