They've said they will continue to sell and support (warranty repairs, customer support, maintenance updates) the iLiad. So I assume that means they are planning on continuing to manufacture the existing models (v2 and Book Edition). There just won't be any new models (for example a v3) or new features added to the software by iRex.
Will that change in the future... who knows?
Maybe after the DR model is more stable and they've finished with most of their plans for the firmware they'll revisit the 8" market. They seem to be staying out of the 6" market because it's already flooded with the Kindle/Sony/Etc. I wouldn't be surprised if down the road iRex comes out with other products in different sizes. But I doubt they'll do another iteration of the iLiad. Maybe a new design in the 8" size, or something along those lines.