With the new WordPress version, quoting a tweet from Twitter is as easy as copying the direct link to the post’s body. The blog engine then pulls the text (or the whole conversation) from Twitter, and replaces the direct link with the whole lot.
That means, this: “http://twitter.com/wmguk/status/213682841010192384” becomes this:
WordPress 3.4 supports embedding individual tweets, like this: http://t.co/4J4ydG9T Crazy how much those developers work #twitter #wordpress
— Richard Dancsi (@wimagguc) June 15, 2012
The tweets seem not to be truly cached and embedded in the post though: they will keep being displayed in the blog only until the original texts on Twitter are still in place. After deleting those, only the original direct link will be displayed in your live website, which makes the whole thing rather fancy – but not very usable.
Update: another downside, the text of the tweet seems to be the only thing displayed in the feed.