I imagine Microsoft will continue as it has been with Windows Phone. This is just a way to use the Microsoft apps across both Windows Phone and Cyanogen devices that want those apps. There is benefit to Microsoft from growing that ecosystem, so that switching between Android devices and Windows Phones is less jarring.
Also, their store is a disgrace of crap, shovelwear and outright scams. They even had a fake Windows 8.1 Update pass their "approval" process. Even when I find a non scam, the quality is usually poor.
If people end up mostly running the emulated apps on your OS, you might as well just use that other OS, and run those apps on it natively, for the best experience. And figure out a way to run your ecosystem on top of that. Specifically here, that would mean for Microsoft to switch to Cyanogen for its devices, and ship a .NET runtime so Windows Phone apps can work on it.
I doubt that's a great idea, but I think it's better than emulating Android apps on top of Windows Phone. I'm just guessing here though.
This is something that infuriates me as a Windows Phone user. I don't need many apps, but occasionally I get interested in something and decide to check it out. It seems that 90% of the Windows Store is utter crap. Microsoft should never have gotten into the app numbers game. I would rather they had a very strict approval process and only let through the best of the best than this scummy garbage.
1. This is very bad for windows phone developer. It will make the ecosystem more suffer
2. There is a little hope. Windows phone is more efficient than android. If wp10 full compartibility with android hardware spec, wp10 can fight on below 100 dollar price