This is actually good news
The entire Azure space is very confusing right now. Microsoft is trying with all their might to get people onto Azure AD -- just click here and you have Office 365! -- and Azure RemoteApp was to be one of the key ways to do it. The only problem is that you needed a proprietary client (last time I checked,) an Azure AD account, and the apps you publish had to run on the latest version of Windows, essentially unmodified.
The problem is that 99% of users who require RemoteApp/Citrix have at least 1 or 2 "senior" applications that don't perform well without a million tweaks, app compat shims, etc. Azure RemoteApp didn't give control over the individual VMs, so it was basically a way to serve up Office. In addition, the real hardcore Citrix users (healthcare and banking) tend to have really crazy application requirements, making traditional XenApp and traditional AD the solution, even if you deploy it in Azure.