Is Zune HD "It?"

The current rumor out there is that Microsoft is discontinuing all Zune Models that aren't from the new Zune HD line.

If you track this rumor back to the source, it seems to come from Paul Thurrott's Supersite for Windows.

I don't know directly of any "bogus" information to have come from Paul's site (do you?) and this one actually makes a bit of sense.  It's obvious Microsoft is pouring everything into the Zune HD and to get rid of everything else might be a decent move.

What's your take?  Is Zune HD "it?"  Is this a smart move from Microsoft?