"It is reported...Mercedes-Benz have ruled in Stuttgart that the Spaniard should not represent their brand in 2008."
I assume that means that they had effectively "fired" Alonso, but I guess I might be misinterperating that. Now obviously Mercedes would've denied it until McLaren made a formal anouncement. But the fact that Hobbs and Varsha were talking about it at Fuji, and that this article is dated from the 17th of last month, says to me that it had some teeth and that Alonso's fate was sealed long before the end of the season reguardless of the DWC outcome.