Simple the iPod Nano is going to start cutting into the iPod Shuffle territory. If you look at the new Nano it is resembling the Shuffle except with a screen. The Shuffle is on its way out eventually, since the Nano has to adopt some price point. Since Apple has already recouped the R&D costs for the Shuffle and Nano, there is no point even developing the Shuffle since it will be rendered useless any smaller then it is, making it thinner makes no sense either since its pretty thin as it is and would not add to a selling feature.
The Nano on the other hand will be rugged enough with a curved screen, thin and light enough with ample of storage. Hopefully a 4, 8, 16GB versions.
The new Nano will end the production cost and marketing for the Shuffle. The iPod Classic might be on its last legs for another generation or two.
Bye, bye Shuffle.
i seriously doubt they'd get rid of the shuffle, they're like everywhere