This announcement that WOTC will "depart pre-painted plastic miniatures, " while not directly addressing the Axis & Allies miniatures lines, is quite worrisome for the future of those offerings.
I had strongly suspected that Counter-Offensive was likely the last set we'd see for the Land Miniatures. It would be unfortunate if the Late War set never came out as there are a few gaps in the line that could use filling, but it wouldn't be a disaster.
On the other hand, it seemed like we had a firm commitment for at least a couple of more sets of the naval game and the gaps left in that lkine are more serious as Rich Baker seemed to be deliberatley holding onto some units for later sets. An abrupt cessation of the line would be very bad in that case.
It may be too early to "panic" but Hasbro has been strongly trending away from pre-painted plastic minis over the past year or so (Heroscape, DDM, etc.) so this is not entirely a surprise.