I don't know if there's been any official change, but I think it's pretty obvious it's going to be used in some form or other. Unless the project ends up being an irredeemable failure (e.g., fundamental design decisions make it not performant enough, insecure, etc), there's no reason for them to just drop it. It solves too many of Google's problems with regard to Android and Chrome OS.

I agree, I always expected it to replace Android and Chrome OS into a single OS.