MorphOS = Ralph Schmidt = Genesi. So if MorphOS should get degraded to an embedded OS only, it nevertheless will stay MorphOS. Without the core of MorphOS, which is done by Ralph and Frank, the others of the current (or former) team won't have anything left for an own OS, they could only support AROS with their contributions for example.

But this is only the worst case scenario. I hope that even if Genesi indeed won't pay them, that Ralph and Frank at least keep their "embedded MOS" easily "upgradeable" by a commercial "desktop kit" to be sold separately by David & Co. To morph it into a full OS for the Pegasos.