Personally I feel like Microsoft is taking Windows Phone less and less seriously. Well, actually they never really took it seriously in the first place. Windows Phone 7 always felt like a side-project, and when we all thought it would be different with Windows Phone 8, things like the X2 happened. This here would be just another step in the same direction.
All of this could be interpreted as Microsoft abandoning Windows Phone slowly.
However all I said is that these news are not good in any case as it worries the loyal customers. And if it's true it's really, really bad. Because it makes the "fanboys" cry.
Lumia and X series are made and treated independently. Well, they are obviously related in terms of strategy, but it should not affect the consumer.
Again, MS is NOT abandoning WP, and we've heard a lot about new GDRs upcoming soon (as well as Threshold Q2 '15). So MS actually has very big plans regarding the Lumia WP.
In my understanding, Microsoft requires Android OS (or AOSP, whatever) to create a bridge between the Android phones/iPhones and WP, because they are very different. I remember first time when I was looking at a Windows Phone, my first reaction was "Wha...?", but this OS was slowly and surely capturing my attention (probably the fanboys affected my decision, not excluded).
So, IMO, in terms of global strategy:
1st. Lumia WP
2nd. (Lumia) Android.