Does that mean that the architecture of Win Phone 7 was a mistake? That it was never really part of a long-term strategy to transition from Win Mobile to Win Phone 8? Does Microsoft really intend to churn through platforms that quickly? It makes you wonder how far ahead they're planning things out over there, and whether this is a platform you should hitch your wagon to as a developer.
Windows 7 was well-reviewed based largely on it's UI (as far as I could tell). Microsoft has kept a lot of that, but the underpinnings are now shared with their tablet (which makes sense) and desktop OS (not sure if that makes sense, but whatever).
Seems like a move that's designed to be more sustainable in the long-term by uniting their efforts. Personally, this move would make me more comfortable buying a Win8 tablet and/or phone.
Windows Phone 8 is based of windows core, the same core that is bread and butter for the company and is something synonymous with Microsoft. There is no switch from directions possible here