Sony has cut down several lines but if you look a bit closer you will see that most of that is redundancy cutting. When you're selling 50 models of a TV line, cutting the line down to 40 to get rid of extra models that don't sell makes sense.

Cutting down an established product line that has, er, 2 models...not quite so sensible.

Despite their lack of knowledgeable advertising they are still considered one of THE brands of readers and as such can only benefit by staying in the market as it continues to increase. Stateside, the only real competitor for consumer dollars currently is the Kindle (though I think we can all agree the situation will probably be changed completely by the end of the year due to so many new companies jumping in). I say Stateside simply because they spent so much of last years effort there instead of global markets. (Which, considering all the blasted copyright/territorial fighting going on, may have been a good move from their stand. I don't have to like it but can understand it.)

And I agree with Zelda about the new model (that we probably won't be getting). A line may not be cut but do they really have any reason to make a new model? Hmmm, no, not right now. For now, software changes will handle most reasonable complaints. Next year the tech will have changed pretty drastically from where it stands now and would make more sense for a new model.