This seems logical. Each version of the Nexus line has sold better than the last. People I work with who aren't phone nerds own a Nexus. It's gone mainstream (even if it isn't selling in Galaxy S numbers). OEMs like Samsung do not like having to sell their $600+ phones against a $350-$400 phone of comparable specs. Google doesn't care about profit on a niche device, but for companies like Samsung and HTC, it's their livelihood.
The last time the "Nexus is going away after next year" rumor came out, some of the details stated that the GPE and any future program (Silver?) was a compromise between Google and the OEMs. The idea was that the OEMs would concede an annual stock version of one of their handsets, and Google would stop selling half-price premium phones. Again, this was a rumor within a rumor.
Silver will only be successful if it goes global. The GPe program has not been successful because it's been squeezed on both ends. On one end, people aren't going to pay $650 for a handset that they can get for $199 on a carrier contract, even if it's cheaper in the long run with a BYOD plan. That's why T-Mobile and Motorola offer monthly financing. On the other end, those who do feel it's worth it to buy up front, when they get to the Play Store, they see that $649 Galaxy S4 right next to the $399 (32GB) Nexus 5, and they ask, is it worth the extra $250? For most, the answer is "no."
Removing the Nexus but offering stock phones in a way that is accessible to customers is a recipe for success. However, Google needs to go the distance on this. These handsets cannot be limited by the carrier. Windows Phone has pre-loaded carrier apps, but they can be REMOVED. The iPhone has no pre-loaded carrier software, but it does have carrier restrictions on tethering built-in. If Google is going to cave in any way to the carrier, then they need to sell unlocked, bloat-free variants on the Play Store at a comparable price (and offer Motorola-esque financing). Otherwise, the "open" OS will be the only one of the big three with no bloat-free options. Go figure.
*Explanation on iPhone tethering restrictions, because someone is likely to ask. By default, carrier-branded handsets have software installed that acts as a switch for tethering. For example, when not tethering, traffic may be routed through dun1.vzw.com, but when tethering, it's dun2.vzw.com (examples). Basically, turning on tethering on a carrier-branded handset says, "Hey, carrier! I'm tethering now!" Because of this, when we're on trips, my wife's iPhone 5s (purchased from T-Mobile) has tethering restricted after our limit. My Galaxy S4 GPe? I've tethered over 12GB in a single day. It doesn't get caught because no carrier has their hooks in it. Anyway, Apple provides this data to the carrier view the tethering app on the device.
