Lumia made large unsustainable, continued losses, and they were cut. Two years ago. This is not news.
The Lumia brand was resold, due to a massive commercial failure. They sold phones, so maybe if it wasn't run the way it was, it could have done okay, but it really really didn't.
Also, mobile OS makers do not support hardware eternally. But you can still get the creators update via the insiders preview, even though its not officially supported. Which is IMO, is a nice gesture.
As for what MS is doing? Releasing windows on arm, windows cloud, the Cortana skills api, scorpio, redstone 3, and continuing to do updates to windows mobile. Pretty busy year for MS.
The future success of any market gains in pocketable or wearable devices for MS depends on the implementation of their other plans, like gaining more marketshare in tablets and notebooks (via windows on arm and windows cloud). And their console. What MS is doing is unifying their platform across hardware so that the same software can run across devices. Success in this field would lead to more apps, and increase mindshare, making mobile possible again.
It's also dependant on other gambits like the HoloLens, wearables, Cortana's skills api - technologies that may surpass the slab phone.
There's no point in fighting battles you are losing without a strategy to win, and winning an almost entirely duolopoly OS system is quite the strategic play.
As such, with market share so low in mobile, MS has not yet called the day on mobile devices, so it's clear plans to re-enter should said above gambits pay off. That of course may be with full windows 10 on arm, and a win 10 mobile like cshell, rather than precisely win 10 mobile. But they have to see how things play out, before there is a reasonably opportunity to invest and see pay offs.
This current level of support, is due to this. Its not quite security maintainence updates, but not quite full feature updates. Its a sort of "life support for now until we can determine our next best way into consumer markets".
Which for you, is not as bad as it could be. Because if you use the insiders preview you get feature updates from desktop. Which no android phone would be getting at this point tbh even if the phone was a wild success. And, in all likelihood you'll get a revamped Cortana via the same sort of means later this year. None of which you'd even come close to having, if MS had given up on the mobile space. Or if this were just a mobile OS company with more limited means, like say, blackberry (who just dumped bb10 like a rock, and went to android).
It's just more like a "backburner" issue for them right now, especially with so many other balls in the air. This year and next year are important years for their mobile plans. Should things like their cloud, on arm, and scorpio plays result in an uptick in development, in programming, it'll make windows 10 on phones a more attractive prospect for consumers. The same if programmers jump onto Cortana skills, and make Cortana better than alexa (a really smart assistant would jazz things up for mobile).
MS really needs some more market momentum to invest majorly in mobile. And it can leverage that from outside the market, but not from within.
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