I don't think that Microsoft is abandoning WP. Trimming the amount of products they are responsible for way down in order to support them better was a given after the purchase of Nokia's handset division. However, I firmly believe that WP is going to take a backseat to the software side of the house in order to focus on getting people to use Microsoft services over the next year or two. Just look at how many Microsoft services work on all the different platforms. OneDrive, Skype (better on iOS and android), Xbox music, and now Office on iPad(something people wanted for years). You can almost move from platform to platform and keep using Microsoft's services with hardly any interruption.
For me, I think its awesome they are doing that. By having Microsoft's services wherever I go, I have freedom in what hardware I use. If Apple comes out with a great phone, I can use it with little interruption in using my data. When I get bored with that, I can always switch to the flavor of the month Android and still keep using my data. Then if someone makes an awesome windows phone, I can just comfortably move back to that. I think that would be awesome. In fact, this reminds me of how Microsoft got started and their push for "a computer on every desk running windows" of so many years ago that was massively successful for them. I think they are going to do the same thing for services on all the other platforms.
Once they have all their software running well on everyone's platform, and have worked out the kinks with "threshold", then I think they will be in a good position to refocus back on the hardware. I'm sure some nice stuff will come along in the next year or two to try and keep people interested, but that's not going to be the focus in my opinion.
TL DR Version,
Software focus first (especially subscription based ones), hardware on the backburner until "threshold"