I pretty much assumed this to some degree, though the devil is really in the details. Episode 7 is said to be 30 some years after Endor, so I figured everything after that point was likely to be changed or discarded. The real question is what they are going to do with everything before that point.
It seems that from the picture on the article that even the Thrawn Trilogy is going to be part of this "Legends" collection that didn't really happen, but personally I think that's a mistake since it takes only a few years after Endor. They have plenty of time to set up the universe like they want for Episode 7 without changing anything until real end of the war with the Empire 15 years after Endor. Getting rid of it is just going to leave a bad taste in the mouth of the hard core fans who are already skeptical of 7, and is a continuity disaster waiting to happen if we have to wait to see something in the post Disney Star Wars to know it really exists.