They already did UWP-only Windows. That was WindowsRT. Nobody bought into that either, but Microsoft still really, really wants that closed-market, walled-garden style business model to happen somehow and so they're going to keep trying.
I believe that their next strategy is to release a full Windows OS (with Win32) that runs on ARM which lets Win32 apps run via an emulator. In this environment, Win32 apps will most likely run like crap and as a matter of course Microsoft is going to keep pushing everybody (developers and users) toward the model that they think will make them the most money.
It's really no problem for my career because I stopped exclusively using Microsoft's tech years ago and I'm comfortable using Linux or a Mac if necessary (but really, I can't stand their UI and I think Apple is even worse than Microsoft in many, many ways). I just like the Windows UI the best and I'd like to be able to build stuff for it in the future....but not if they are working towards taking away my freedom to control my own computer.