There has been a few articles going around saying that MS is trying to include WP Blue with GDR3. I really, really, really hope so. MS needs some fire under their butts.
That isn't what those articles said.
Microsoft is adding almost all new features to WP8.1. But WP8.1 isn't just about adding new features to the OS. It is also about evolving the OS itself.
Due to all the outrage, Microsoft is now looking to take
some of those features and ship them together with GDR3. However, because those features are being developed for WP8.1, which is further evolved than WP8.0 / GDR3, Microsoft must adapt those features back to the current OS structure of WP8.0, which is also a lot of work. So, basically, in order to give us some WP8.1 features a bit sooner, as part of GDR3, Microsoft will end up doing some things twice, slowing the overall progress of WP even further. That isn't a good thing, so Microsoft will focus on just a small subset of features, and those features won't necessarily be those on our most-wanted lists, but those which are most easily backported to WP8.0.
This has been part of Microsoft's problem all along. They have always been developing user facing features on top of an operating system that is constantly shifting under their feet. That is a lot more work than doing some recoloring and slight OS tweaking, and then focusing all your remaining resources on user facing functionality and apps. Android and iOS are in the enviable position of being able to do that. Microsoft isn't, or at least they aren't if they want to realize their vision of a unified OS spanning smartphones, tablets and desktops.
I'm not trying to excuse Microsoft here. I do agree that they need to change some of their priorities and at least address those issues which don't go any deeper than the UI (like volume controls).