I sincerely doubt that what your friend heard at that conference was an official Adobe statement. I'm not an Adobe employee but I use their products and I think your friend is misinformed.
Adobe offers 3 different web authoring products aimed at totally different users:
MU is a consumer level product aimed mainly at visual designers, web hobbyists, & others who want nothing to do with code. MU is nice but very limited in scope. It might be all you need to build a small charity site but it can't do shopping carts, blogs, CMSs or any other advanced web sites.
On the other hand, DW is pro-level software aimed at serious developers who care about code and don't want to be limited by their software. There's very little you can't do in DW, providing you have the requisite coding skills.
Edge Code is another Adobe contender but IMO it's not quite there yet. Again, mainly aimed at coders who want a simple UI without all the other bells & whistles that DW offers.
I don't see DW going away any time soon. There's nothing else that can compete with it.
Nancy O.