Yes they did state that they wanted D3 players to migrate to other Blizz games. I recall them saying that. But just because MoP is on the doorstep doesn't mean that's what they meant. I am sure they'd like to have all D3 players get sucked in by MoP. But there's Starcraft and something called Titan also. Who knows what else they might be working on. I didn't take that statement as a blanket to move players to WoW but to keep them playing Blizz games, whatever they might be.
So back on topic, I certainly hope 1.04 comes out soon and it is huge. Our expectations are getting huge and I see disappointment coming on. Just like before the game was released, our expectations were huge and many of us were disappointed, either due to being let down by ridiculous expectations or a lackluster game. That's an opinion we aren't talking about here. But remember, this is only a patch, not an expansion. So game changing patch items may be low in number and kept back for an expansion.