The relevance of this news is therefore not so much about who's in charge, but more about the indication that Microsoft now apparently regards the primary business purpose of its web stack to be drawing developers to Azure (much like Internet Explorer being part of Windows organizationally shows that the business purpose of IE is to support Windows). That means that the future direction of ASP.NET will be Azure-centric, which could be bad for .NET web developers who prefer to avoid Azure.
About two months ago I received a phone call purported to be from Microsoft. It was a guy with a cockney accent who was doing interviews with registered Microsoft partners (which I am) about why they aren't using Azure.
I spent about half an hour running through my reasons: largely related to cost, but also of control and the perceived benefits. I discussed how it's still cheaper to go co-lo or even managed/dedicated and those options give you far more control over the final solution. Other reasons included how applications had to be ported to the platform specifically, and how I personally didn't see Azure being around for more than 10 years and so it would be a waste of time to build for a platform that no-one (at least to me) was asking for to begin with.
He said that all those reasons were valid and were, in fact, the same reasons he heard from nearly everyone else he had spoken to so far.
The moving of the ASP.NET people to Azure is concerning, as if Microsoft is betting the farm on the success of their cloud offering.