What will happen with UO?
UXO was not designed to compete with UO, and offers a completely different experience, from combat, to questing, to the inclusion of the virtues. UO will continue to be supported and expanded upon, and UXO will exist alongside of it.

That being said, the dev team is of course hoping that some UO players will have interest in both, though the main target audience is CRPG/Ultima fans and current MMORPG players from other games.