Neil Cybart is right.
MacRumors takes a lot of liberty with how it words titles, apparently hiding behind the argument its name implies everything they publish is by default a rumor. It's click bait. And a lot of MR readers respond as if these things are factual, leading to arguments and more clicks. Heck they announce things as 'launched' that aren't, at least not yet. It is misleading. But okay, it's business.
So on topic, I admit I dont know what to believe. When the AVP was released we were told only 400,000 units were going to be made due to supply issues. Now we are being told by this analyst who has no real official knowledge, that Apple was going to produce 800,000 units but has now downgraded to 400,000. All I really know is I can still buy one, so they didn't sell out. What does that say about the future? Don't know. Maybe this is the 'Newton' of our day, introducing a lot of new ideas but ultimately not succeeding as a product. But experienced gained with the Newton did eventually resurface in the iPhone and iPad. So who knows? Maybe this vision will fade out, but I don't think Apple will abandon the product category. Time will tell.