MeeGo becoming some kind of Android competitor is certainly out of the window.
But Nokia's R&D money will shrink a lot as Symbian is being killed(while still largest with Samsung) and i do honestly believe that this time they will do what they promised and keep MeeGo as future testing bed. That might mean that no devices after N9 or two devices next year, but i do believe they will develope it internally and see how N9 ecosystem gets on.

MeeGo being part of future distripution means just that, part of it. Though i'm certain that harmattan is by far the most developed inside project in Nokia.