Xabi and which team he will go to is just a pure speculation at the moment, I do not believe that they are going to be all that much aware of his decision more than us. Newspapers will just write whatever they want to write and won't care about anything. Bayern is in troubled position right now, sort of because of Xabi as well, so him wanting to go to Bayern would not make sense, but even if that's true, even Xabi doesn't know who he will pick yet as long as it is not official.
We should wait and see, until the very very official deal being public to everyone, I will not believe anyone at all. It should be important to realize that we are going to end up with some stuff that are not easy to handle, so it is not going to be easy.
I understand Xabi Alonso. Great tale. Like world-class football experts, everyone has an opinion. Me? Waiting for the official announcement. Despite their appeal, rumors are pointless. Bayern is a shambles, even for Alonso, so moving there is risky. Football is unpredictable, right? Maybe he can repair things.
Bayern and the treble - that's ambition. Every manager wants that ultimate flex. Talk is all there is until then. No need to guess the ending; we're just watching the show. Relax and observe what Xabi does, as you indicated. Stress not. We have the greatest seats in the house.