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While working on a fix for #18211 I noticed two problems with the setup.py that's used to build the stdlib extensions.
1) setup.py uses sysconfig instead of distutils.sysconfig. The sematics of the two modules a slighty different.
2) The block of code starting with the this text is not necessary because distutils.sysconfig (which is used by the build_ext command) already does the right thing for environment variables:
 # When you run "make CC=altcc" or something similar, you really want
 # those environment variables passed into the setup.py phase. Here's
 # a small set of useful ones.

So much for obviously correct changes...
1) fix typo in import statement (from sysconfig import import ...)
2) setup.py uses sysconfig.get_path and that's not present in distutils.sysconfig.
(Sigh..., why are there two modules with almost but not entirely equal functionality and APIs?)

distutils.sysconfig module is theoretically deprecated in favor of sysconfig module. It is better to fix sysconfig module than to switch back to distutils.sysconfig module.

I don't agree. Distutils still uses distutils.sysconfig for configuration information and setup.py wants to adjust that configuration, it should therefore use distutils.sysconfig instead of the global one. 
That said, it would be better to change distutils to use sysconfig instead of its local configuration information (distutils.sysconfig, distutils.command.install.INSTALL_SCHEMES, ...). That has never been because distutils is frozen due to backward compatibility concerns, but it might be better to actually change distutils for 3.4 when there will be other changes to deal with the new packaging PEPs as well).
However: switching distutils to use the toplevel sysconfig will change functionality, as I wrote in my initial message you can use environment variables to override variables for distutils.sysconfig, but that doesn't work for the global sysconfig because the values in _sysconfigdata are expanded at build time.

Note that the distutils feature freeze has been lifted, so in 3.5 sysconfig could be reused by distutils.sysconfig, but the existing functionality (different API + ability to override with env vars) must be preserved.

Is this still relevant now that distutils is deprecated?

This is no longer relevant now that distutils is deprecated.