It does say in point 4 that the foundation will fund NEM Labs, unless I misunderstood.
Quote:
4. That funding the NEM Labs team will accelerate the launch of the catapult public chain. (Nearly all of the NEM Labs resources allocated to launching the catapult public chain can and will be funded by the NEM Foundation. Although certain biz-dev activities will likely be delayed, we dont view them as critical pre-launch.)
You misunderstood. That's point 4 of their rejection.
It invites them to apply as a bog standard service provider.
So that point along with the other ones were points stating why the NEM labs Team were unable to convince the majority of the Core Team. However, it still stands that the Foundation will be funding NEM Labs with some of the 25M XEM of their funding towards Catapult development and Public chain launch this year:
"Nearly all of the NEM Labs resources allocated to launching the catapult public chain can and will be funded by the NEM Foundation".
If that's what you choose to believe you read then I fully support that decision.