I honestly have no idea what to think, it does not makes sense (to at least me) that LG would halt production to force consumers to buy LG branded devices as I imagine Google has sort of contract with LG that guarantees X amount of devices.
I also have trouble believing that a new phone is being EOL (End Of Life) after only a few months of being on the market, to make room for a newer Nexus device.
I can kind of see Google LG underestimating demand and there being a short delay while LG ramps up manufacturing to meet demand, but that delay should be shorts, not months on end.
So, I really have no idea what is going on, I have a Nexus 4 and really like it and that is all I know.
Dan