[Rumour Mill] Hangouts to introduce SMS Integration, Default Messaging app in Android 4.4

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According to recent leaks, Hangouts will support SMS & MMS Messaging and will become the default Messaging App in the upcoming Android 4.4 release.

+Android Police is reporting today that it has uncovered leaks of the next version of Hangouts for Android, version 1.3, giving indication that it will finally integrate SMS & MMS support into Google's messaging platform. Furthermore, Hangouts will also allow sharing of videos, instead of just pictures.
SMS Options in Hangouts 1.3
Messages sent using SMS will show "via SMS" next to the timestamp so that you can always figure out the protocol used for each message delivery. You can request delivery reports for sent SMSes, a feature which is a part of the SMS protocol. MMS picture messaging is supported as well, though it has not been confirmed that sending of video via MMS at this time.

Rumours suggest that Hangouts may replace Android's stock Messenger app, however this may only be exclusive to Nexus devices. The Android team may decide to keep Android Messenger as part of AOSP for OEMs to use.
SMS sending in Hangouts

When?

There is no mention of when we will see Hangouts 1.3, but it is speculated that it will be announced alongside the reveal of Google's tasty Kit Kat treat, Android 4.4, at the end of the month.

The good folks over at Android Police have included a mockup of the upcoming software and more, so check the source link below!

The only question remains, now that Hangouts has replaced GTalk and Android Messenger, when will it replace Google Voice?
Source: Android Police