There is too much smoke for there not to be some fire. But its not over the line yet and with clubs like City (or maybe even Bayern) potential late entrants, I'll only celebrate once its on arsenal.com.
But Xhaka would give us a lot of options in midfield so its fun to think about. I've long felt that Wenger's dream was to find a DM with tackling ability, positional sense, and passing range that he could play next to Ramsey - essentially a stronger, tougher Arteta. Its pretty clear that Coquelin (or worse, Flamini) doesn't have the passing skills to pull this off - our midfield is totally dysfunctional with that pairing, we can't advance the ball quickly to the feet of the attacking midfielers, Ozil ends up having to pick it up deep and start attacks, etc. Wenger has been auditioning Elneny for this role in the last few weeks but Xhaka seems to be a class above. I imagine that Xhaka-Ramsey would be our starting pairing in most games in which we were favored and expected to be on the front foot, but playing 2/3 of Xhaka/Elneny/Coquelin would give us a really strong central pairing in tough matches or when closing out matches. I imagine that Cazorla would ease into the Rosicky-esque elder statesman squad player role, primarily playing if Xhaka was injured or needed a rest and we needed another passer in midfield, or move back to Spain.