I don't see either one of them going away anytime soon in spite of disappointing sales, and real or perceived technical issues.
With the majority of portable devices being ARM based, MS is not going to abandon an ARM based windows, though it may be merged into Blue.
As for Surface:
Panay says the team is working on future Surface generations at the moment . "When I say generations, not just one, we have the teams at full speed and loving what they're building and seeing," he says enthusiastically. "I think things just keep getting better, just hopefully what you'd expect from us."
MS often needs 3 iterations to get something really successful, and I think their tablets (haerdware) were reasonably decent already, even if they don't have the sales numbers to back that up.--
Wacky Races 2012!