After fragmenting their install base withe the Core they would be absolute idiots to ditch the Core -- especially when its value, low price point, is right around the corner. It could happen, but it would be a sign of utter incompetence and multi-personality disorder and lack of follow through on their vision/business plan. I completely understand MS's moves in regards to creating the Core, even though I thought a HDD should have been standard for online in the least (as I think with DLC it can repay for itself easily), but for them to dump it now would solidify the negatives of no HDD standard and allow them to reap none of the rewards of a cheaper console down the road.
Just the kind of move we expect from the big wigs these days!
Nah, Bill Gates was praising/defending the Core very recently, and he is the head honcho. Methinks it's not going anywhere.