With the current incomprehensible (a weakest word that I could use) leadership policies of the company, I have little doubt that all what you have outlined will happen. It is not an economical, market-driven, or anything like that, decision. It is purely a political one and based on the personal preferences of a group of people that got into power. This did never end well in the history before, although big empires/corporations, of course, could still be around for quite some time as they have a lot of resources and 'psychohistoric' inertia - but we will see what happens.
Personally, after over 30 years of being a loyal Microsoft customer, I am mostly done with them, apart from emails, OneDrive and some other things that are difficult to change or frequently used by others - and not because I did not want to continue. Just was forced by all these decisions they keep making.
Examples when something good was ruined with little reason (and in IT, too) are not uncommon. Just think of what happened with Multics.