Also ask him if the Scorpio will be able to use Word or spreadsheets.

Look at the software. Software speaks louder than a hardware update and a hardware revision.
Hell, Scorpio could even be interpreted as accelerating this development. Making the platform on par with PC so that it's easier for developers to make Win10/Xbox games.

I have no idea why they would do that. As of now, home consoles perform a lot of functions and provide a gateway to other services. Why would they give up that?

Pretty much this. They will allow this generation to try and transition to theis new hybrid form. Experiments regarding this were already plenty back in the 7th gen for both MS and Sony.

Spencer said Xbone would not be available without Kinect

http://mspoweruser.com/microsofts-phil-spencer-xbox-one-is-kinect-they-are-not-separate-systems/

There will continue to be Xboxes, but I think in the future we'll see more skus, ranging from a $100 more gaming focused Roku competitor to a high end $500 gaming machine. It's pretty clear that their goal with UWP is to have all Windows store software at least technically compatible with all their hardware. Though I don't think we'll ever see them drop the Xbox name, because there's already too much brand recognition. There would be nothing to gain from such a move.

Ultimately, I don't think their plans will have any real effect on xbox console gamers, but it'll throw a wrench into these ridiculous console wars.

Nuts that even then while on one hand saying that it was as vital to the console as the controller, you can use the system without the Kinect sensor attached, like at that point to refuse to sell customers a version without the Kinect was like trying to insist that every model of a car comes with a trailer even if you don't want it.

Can the XBone not already do that? I thought it was supposed to have access to the Windows store already, and Office is one of Windows' biggest draws.

lol... every year... someone comes up with that :)
And every year... "Microsoft actions speak louder than blah blah"

Sure...

You need to differentiate hopes with reality The Xbox brand is strong and here to stay.
Microsoft may extend it like they are doing with Microsoft Windows 10 and the Xbox application for instance but not replace or absorb it in any way.

To be fair he does not state nothing about Consoles in his twitter, his answer was regarding "Gaming" that is much wider than just Consoles.

But sending all their games for the PC will not help the sales of the Scorpio.