The key word is "developing", as in, they don't have it yet. Microsoft has constantly been stuck behind developments that are waiting to be done. They obviously held out on Windows Mobile because they were gonna switch it to x86, until Intel abandoned their plans to support that, kicking the legs out from under that project. Now it's emulating x86 on ARM, a work in progress.
The problem is, they've strung along their mobile platform for years while trying to do all this, and left everyone on it without a paddle. With no devices and no point where they can conclusively say they're ready to try again, it makes sense for them to "kill it". And then launch as a new thing as some indeterminate point in the future where they actually have a product together.
As long as the Windows desktop (and particularly, Windows 10 S) development continues to push UWP, adding mobile support again later won't be particularly difficult.