From the Android VPN and GM: "We're seeing some speculation that AOSP is being discontinued. To be clear, AOSP is NOT going away. AOSP was built on the foundation of being an open platform for device implementations, SoC vendors, and instruction set architectures.
AOSP needs a reference target that is flexible, configurable, and affordable – independent of any particular hardware, including those from Google. For years, developers have been building Cuttlefish (available on GitHub as the reference device for AOSP) and GSI targets from source. We continue to make those available for testing and development purposes."
Since at this point they'll need to create device trees like LineageOS does with Snapdragon/MTK phones, so I hope they won't stick with the worst Android manufacturer on Earth. Especially now that the snapdragon 8 elite 2 will have the same security features as the Tensors.
I agree that this would be a crazy choice and doomed to fail.