Matter will be implemented for the C8 later this year. The built in dual zigbee radio can do matter and thread.. It will later come to the c7 but that will be matter only.
Is there an official statement from Hubitat by any chance? I have searched high and low for something that confirms what you just mentioned about the C-8 (hey, it should be tehcnically possible) but have yet to see a company issued statmement that clearly says "Thread in 2023". Again, I'm not the brightest bulb in the socket so please forgive me if I have missed the obvious. Whatever I'm looking for tend to be somewhere right under my nose but this time... nothing.
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They have not made any firm, publicly stated commitments re: timing of possible Thread implementation, AFAIK.
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I actually don't doubt it'll happen. It has to. I just know that every last technology company suffers from resource constraints (understatement of the year?) but even so, a very tentative roadmap is better than no roadmap IMHO. Hubitat's guess is better than my guess, that much I know 
Hubitat usually does not publicly discuss feature roadmaps. But I don’t doubt they’re thinking about how to integrate Thread and, potentially, Matter, in the future.
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Perhaps so. However, my past experience with Hubitat indicates they do not release timelines prematurely. What we do know is that the original C-8 announcement from @bravenel indicated that Matter/Thread compatibility are anticipated later this year.
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You're right, "expected later this year" is actually what I was looking for. And it makes me happy. I can put up with silly workarounds for another few months if I know the best of both worlds is around the corner. The best of both worlds = Hubitat and Thread. Matter is a good thing but honestly Matters a little less to me right now (and yes, I'm over the bad Matter dad jokes too 
)
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Many users would look forward to such an update, just keep in mind that wasn’t necessarily a commitment in terms of timeline or even ongoing prioritization of thread or Matter compatibility.
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In this implementation, isn't Matter just an add-on to the networking stack? If so, shouldn't it be available to C-5 devices too? (same CPU and everything, no reason why it shouldn't be possible)
For what it's worth, we aren't seeing a compelling reason to support Thread, and it's not in our current year plan. Two reasons for this: (1) there only needs to be a single Thread edge router in a home, and virtually everyone already has one, and (2) it remains unlikely that our Zigbee radio could support both Zigbee and Thread simultaneously, despite noise that suggests that might be a possibility. We will continue to evaluate this.
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Yes
Hypothetically, let's say I have thread device allready installed with a edge router. How would I control it locally with Hubitat if there is no thread radio nor matter support?
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I have a couple Apple homepod minis that will serve as my Thread boder routers.
Here's a list of compatible Thread devices from the threadgroup.org site
https://www.threadgroup.org/What-is-Thread/Thread-Benefits#certifiedproducts
I assumed that once the hub supports Matter (and that's on the confirmed to-do list) it will be able to talk directly to the Homepod mini Thread border routers like the Homepod mini (and they'd do that over Wi-Fi/Ethernet, right?), thus giving HE access to the Thread devices. But I've been wrong before... 
The hub can support Matter in the future with a software solution.
Direct thread support would require a hardware-based solution.
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You will be unable to control it until there is Matter support in the hub’s platform.
I think it would talk directly to your matter connected thread device. Basically, someone one would:
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Connect their thread device via Matter to another controller (Apple Home, Google Home, etc…).
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Generate a new matter pairing code in that app.
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Use the new matter pairing code in Hubitat to give the C8/7 control in addition to the previous matter controller.
This way Hubitat can control the thread device through its automation, but leave the boarder router stuff to someone else.
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My cloud stuff are on a separate vlan. My would be thread router (nest hub) sit on a different one from my Hubitat. In this case, does that mean my future Matter HE will not be able to control the thread devices?
You would likely need to make sure mdns is passed through and that those segments can pass info to each other.
Does'nt that would negate the use of isolated vlan?
You would need to have the devices talk to each other. You could just move all your iot stuff to the same vlan.
