Yep, sadly they've discontinued the whole "squeezebox" format. I still own a few of their "boomboxes" & radios and will continue to until they die. Although, I am selling my SB3 to go to a Mac Mini server.
I don't understand killing the whole format. There's not really anything else quite like it. My kids love having every song, artist, playlist, that's on our computer, available to them in their rooms and remote controllable from their iPod touchs. They both have the smaller, single speaker "radios". It's a nice little player, color screen to show artwork, it can stream radio stations from around the world and sounds decent enough for 8 & 12 year olds. I will continue to use the "boom" as our alarm clock/radio in our bedroom, as well as a second one for portable music on the patio, deck or in the garage. Hopefully they stay functional for years to come. Or until someone comes up with a better system.