Not seeing it. If WP ever starts to really feel like Android, I'm outta here. I couldn't wait to get off Android, but that's a rant I've posted elsewhere.
Is WP changing/evolving? Yup. Is it good or bad? A bit of both. I, too, miss the hubs. By the time I'd really figured out what I could do with People, the ball had moved, which sucks. Xbox Music has been underwhelming the entire time I've had a WP, so I can't say that I've seen any degradation, there (of course, I wouldn't notice if they deleted it or made it so it only played 1980s show-tunes, in reverse -- it's just worthless). I totally disagree with you about the 8.1 layout, though; I hated the old, "narrow" layout and like having a tiled background, despite initial concerns.
Oh, and I've come to loathe the tiled design inside apps, at least the way most are doing it. OneDrive is a prime example: I never, ever, ever want to see folder contents tiled (except photos, but I don't take many pictures) -- please just give me a list. The aesthetic of a square logo at the left of the text description is great, though.
What do I want from WP? The happy middle-ground.
Android is way, way too open. You're promised the world, but nothing integrates quite right, so it ends up being a hot mess of unrealized potential. There are some great apps, but the OS doesn't really come together in a way that really works for me.
Apple is incredibly slick. It really does "just work". At least it does until you try to go off the reservation. Every news app has to implement their own "share" features, so I can either choose my news app first, then my clipping tool; or I stick with Pocket and only use the apps that have a "share to Pocket" button. (Yeah, that's overly simplistic, but makes the point.) It's Apple's walled garden, which is great when I need to recommend a device to my mom or grandmother, but causes me enough issues with my existing services to be frustrating.
The promise of WP (and Win 8) was that it wouldn't be as flaky/fragmented as Android, but not as closed as Apple. Win 8 has the "Share charm", which works well enough, but just needs some providers. It looks like WP is moving in that direction, too. There are a number of good cloud apps for WP. And then there are (or should I say "were") the hubs. I think what we're seeing, right now, are growing pains around the hubs and associated APIs. If that's the case, that it'll hurt for a little while (not more than a few months, if they're serious about not being the next WebOS), but it'll better realize that middle-ground potential.
All that said, though, WP is in a tight spot, right now. They have a core fan base (that's us), but that base isn't enough on its own to a) keep WP as a core product, internally (conjecture); b) demand apps from providers like Android and Apple do; or c) draw the same level of quality for the apps that do make it. If MS changes WP, they risk alienating the existing base. If they don't, they pretty much guarantee the platform will languish in the realm of corporate hobby, which will ultimately mean even the existing base will erode as other platforms adopt/adapt distinguishing features from WP.
Honestly, it's issue C, above, that concerns me the most. Microsoft clearly sees the mobile space as a do-or-die endeavor, so there's no immediate risk, there. All things being equal, MS has the deep pockets to maintain WP until it hits a point of "critical mass" adoption that gets developers' attention. If, however, there is some problem inherent in the underlying platform that is undermining the quality of apps (my peeves are Pandora and Kindle, right now), then there is zero chance that the platform can survive because it'll be impossible to create apps with the same polish as, say, Apple. Not having built any WP (or WinRT) apps, I'm not about to say there are issues with the underlying platform. I suspect the developers are just phoning it in or (in the case of Kindle) subtly pushing people toward other platforms without actually alienating their own base. Regardless, I want more apps on WP that are at least as good as the iOS equivalent.
That was way more than I intended to write, but I got to thinking out loud.