For a trip in 1999 we stayed in the cabins.
When I was planning the trip they were just finishing up replacing all of the Wilderness Homes with the current Wilderness Cabins. Disney was leasing the homes from Fleetwood and the lease was up. Not sure if there is a lease for the current cabins, but OP what exactly did you hear? I have read nothing. I think I have read that at some point they refurbed all the interiors.
In case anyone wants to know, the old homes were refurbished and are part of a snow bird 50+ community a few miles from WDW.