Rumor on the street, at least in the mobile handheld industry world, is that HP may be discontinuing their line of stand alone PDAs. The rumor originated from a recent refusal by HP corporate to sell 1,000 current and supported iPAQs to a customer. No company rejects an order for 1,000 devices if they mean to continue them. This same customer was not able to source this iPAQ in any significant quantities from distributors either.
Keep in mind this is a blogged rumor...that means it is many times less reliable than the one from the cubicle next to you.
Even if true, HP may just be consolidating their iPAQs around iPAQ Phones.