The squats conversation has been an interesting one, and I do believe GW could make them happen. It would however be a big investment, and my thoughts are that plenty of salt is required on it.
The source had said it was for 40k, not AoS, but its possible he was mistaken (I was not there and only report what sources say). He was clear 40k was what he was talking about, but time will tell, and recent evidence points towards AoS. The Duardin have disappeared on the GW Webstore.
Here is further intel on what is coming.
via anonymous sources on Faeit 212
Just thought I'd chime in on the Squats thing, having chatted to a few folks in the know, It's not what people think. Steampunk Stunty Folk are indeed coming, but not for 40k, they're actually the new Duardin for AoS and someone seems to have their wires crossed.
Not saying it'll never happen, but none of the scuttlebutt I've been party too included them (there's always room for error).