This is correct, although this isn't likely. Replicating the end-user cloud services Google provides is hard enough, but replicating the app store could be much harder since so many Android apps are written to call Google Play Services APIs. Microsoft would have to spend considerable resources getting developers to rewrite (and even harder, maintain!) their Android apps to target Microsoft equivalents for Play Services. Perhaps an easier sell to developers than "hey, learn C# and build your app from scratch for Windows Phone", but easier than impossible does not necessarily mean possible.

Possibly, but not likely for a while. The Play Store is the one with all the Android apps. There'd have to be something quite compelling to get developers, especially ones using Google services in their apps, to support the Microsoft or Cyannogen stores. Because there'd still be a cost in supporting the alternative store, and so far most developers aren't wanting to do that.