Some of the people already joined LibreOffice as far as I understand, so it means that OOo is basically dead. LibreOffice can be thought of as a natural continuation if they do the development (so far it's been only an organisation, without code releases, but those should come soon).
This is the plan, yes. But it depends on how many devs quit. It enough people shift to LibreOffice, that plan might fail and OO will be either scrapped, or only available to paying customers.
Is there any reason to think that LibreOffice, now without any support from Sun/Oracle, is going to cross the threshold of "professional usability" that OpenOffice is just too buggy to reach?
The reason is Canonical's, Redhat's and Novel's support at least. They should be able to solve it even between only 3 of them... Whether they will be able to, is another question. We'll have to wait and see.
Especially since Canonical wants to make it the default suite and they're going for userfriendly image these days.
