A.T. Robertson Commentary Luke 7:29

"And all the people when they heard, and the publicans, justified God, being baptized with the baptism of John." — Luke 7:29 (ASV)

Justified God (εδικαιωσαν τον θεον). They considered God just or righteous in making these demands of them. Even the publicans did. They submitted to the baptism of John (βαπτισθεντες το βαπτισμα του Ιωανου. First aorist passive participle with the cognate accusative retained in the passive. Some writers consider verses 29,30 a comment of Luke in the midst of the eulogy of John by Jesus. This would be a remarkable thing for so long a comment to be interjected. It is perfectly proper as the saying of Jesus.