Alexis Metaireau <ale...@notmyidea.org> added the comment:

_run_setuptools_install is only intended to support setuptools setup.py, 
converting .egg-info to .dist-info, internally. IMO, you should not care about 
the differences between setuptools/distutils1/setuptools at this level, as it 
should be taken care at the install level.

When installing old setuptools-based setup.py, the .egg-info should be gone, 
replaced by a shiny new .dist-info folder. I'm not sure why you're talking 
about it in the context of develop, can you clarify this?

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<http://bugs.python.org/issue8668>
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