I think the news has been misrepresented.
Microsoft are not backing out of Windows Phone, but of being a device manufacturer. If I understand it correctly, Microsoft still employ something like 4000 ex-Nokia design and engineering staff; what they've disposed of is the manufacturing facilities. This means that new Microsoft devices will be assembled by companies like Foxcon instead of in house.
Also. the range of devices will be smaller, concentrating on the three areas Satya Nadella outlined. The hope here is that OEMs will grow into the space vacated by Nokia and will help grow Windows Phone's market share. The idea seems to be to recapitulate the Windows PC model into the Phone market and it's here where I get a little dubious, especially if the strategy works.
For years, PC OEMs have hardly been their customers' best friend. While Microsoft have dropped a ball or two, the complacency into which OEMs fell was pathetic. They may have been upset by Surface, but none of them can honestly say they were doing their best in terms of design and machines like the Dell XPS 13 would have been inconceivable 3 years ago.
Then there is the issue of bloatware. The embarrassing debacles suffered by both Lenovo and Samsung show that this problem hasn't gone away by any stretch of the imagination. The one thing it's hard for users to do is buy a PC which just works. Is it any surprise that Windows has such a poor reputation? If Nadella is serious about wanting Windows delighting it's users, then he's going to have to find some way of stopping OEMs putting their greasy fingers into the pie and recapitulating this in the mobile space just seems like a bad idea to me.
Of course I'm smart enough to buy a Surface, or a Signature Edition PC, or a Lumia, but I've never been an 'I'm alright Jack' personality.
As for saving you from an iPhone, I don't feel the need. If that's the device that best meets your needs, go with my blessing. Personally, I don't like the way Apple tie you in and I find iOS boring to use, but it is my fall-back option should Windows Mobile fail.