I think they've already made the decision who they want, just like they've already had the writer they wanted. They're just keeping it under wraps and he's just being coy about it.
As far as Indy goes, it's not on the back burner, it's not even on the stove.










tiredjay,
Irwin Winkler directed five films before doing The Empire Strikes Back, including one called Loving. I don't see the relevance of Bird's resume to date as a reason why he wouldn't be a good fit for Episode VII.