[chore] [docs] Update encoding extensions readme doc (open-telemetry#…

…27478)

According to the recent design changes

extension/encoding/README.md

@@ -1,18 +1,8 @@
-# Encoding extension
+# Encoding extensions
 
-<!-- status autogenerated section -->
-| Status        |           |
-| ------------- |-----------|
-| Stability     | [development]  |
-| Distributions | [] |
-| Issues        | [![Open issues](https://img.shields.io/github/issues-search/open-telemetry/opentelemetry-collector-contrib?query=is%3Aissue%20is%3Aopen%20label%3Aextension%2Fencoding%20&label=open&color=orange&logo=opentelemetry)](https://github.com/open-telemetry/opentelemetry-collector-contrib/issues?q=is%3Aopen+is%3Aissue+label%3Aextension%2Fencoding) [![Closed issues](https://img.shields.io/github/issues-search/open-telemetry/opentelemetry-collector-contrib?query=is%3Aissue%20is%3Aclosed%20label%3Aextension%2Fencoding%20&label=closed&color=blue&logo=opentelemetry)](https://github.com/open-telemetry/opentelemetry-collector-contrib/issues?q=is%3Aclosed+is%3Aissue+label%3Aextension%2Fencoding) |
-| [Code Owners](https://github.com/open-telemetry/opentelemetry-collector-contrib/blob/main/CONTRIBUTING.md#becoming-a-code-owner)    | [@MovieStoreGuy](https://www.github.com/MovieStoreGuy) |
-
-[development]: https://github.com/open-telemetry/opentelemetry-collector#development
-<!-- end autogenerated section -->
-
-The encoding extension allows for other components to reference ingress/egress data formats 
-to allow for simplified operability.
+The encoding extensions can be used by compatible receivers or exporters to encode or decode data into/from a specific
+format. This is useful when the data is being sent to/from a system that expects a specific format and doesn't support
+the OpenTelemetry protocol. 
 
 _🚧 Under active development 🚧_
 
@@ -23,52 +13,29 @@ worked towards.
 
 ### Development
 
-- CodecFactory: Allows other components to reference code by name and version
-- Codec: Defining the expected interface for a codec
-    - Length Delimited Codec: Used fixed length payloads to represent a collection of data that can be merged together
-- Add existing formats to the codec's libraries.
-- Add support to the following components
+- Add endcoding extensions support additionally to the existing ways of configuring encodings (where applicable) 
+  to the following components:
     - `file receiver`
     - `file exporter`
     - `kafka receiver`
     - `kafka exporter`
     - `kinesis exporter`
-- Add codecs for open source formats, ie: `otlp`, `zipkin`, `jaeger`
-
-Component support will be behind a feature gate to avoid change in behavior
-
-### Alpha
-
-- Adopt vendor formats as codecs 
-- Transition feature gate to default to using encoding extension
-- Add dynamic mapping support for `avro`, `parquet`, and `gotemplate`
-    - Not fixed on these but I am aware that users are interested in these
-
-### Beta
-
-- Add support for remote schema management
-    - Using `AWS Glue`, `kafka schema registry`
-- Performance break down of difference codecs (static, dynamic, remote)
-    - This is more to help provide information to users to expected performance impact.
-
-### Stable
-
-- All features complete
-- Absent of bugs that impact core behaviours
-- Dependencies can also be marked as stable
+    - `pulsar receiver`
+    - `pulsar exporter`
+- Add encoding extensions for open source formats, ie: `otlp`, `zipkin`, `jaeger`
+- Deprecate the previously available ways of configuring encodings (where applicable).
+- Remove the previously available ways of configuring encodings in favour of using the encoding extension.
 
 ## Example configuration
 
 ```yaml
 extensions:
-  encoding:
+  zipkin_encoding:
+    format: proto
+    version: v1
 
 receivers:
   kafka:
-    encoding:
-      name:   zipkin/v1
-      format: proto
+    encoding: zipkin_encoding
     # ... other configuration values
 ```
-
-[translators]: https://github.com/open-telemetry/opentelemetry-collector-contrib/tree/main/pkg/translator