The report stated that after purchasing the handset that the buyer wanted, he would make a decision to permanently have it run on either Windows Phone or Android. To make this plan feasible, Microsoft was planning on making the Windows Phone hardware specs more in line with those found on Android models. To some degree, that has become reality thanks to the GDR3 update which allows the Nokia Lumia 1520 phablet to offer a 6 inch glass, 1080 x 1920 resolution and to feature a quad-core Qualcomm Snapdragon 800 CPU under the hood.
Obviously, the plan never went past the discussion stage and while Microsoft still has the same goal of wanting to see Windows Phone on as many devices as possible, this apparently will not be the way the goal is achieved.
source: TheInformation via WMPoweruser