Well, I can't say I am all that surprised by this annoucement. I just thought that Sharp would release one more 3x00 model before migrating over to the Papyrus line. That turned out to be wishful thinking on my part.
Also, the Zaurus will continue to be available for a while after the stop production date; it just means that Sharp won't be building anymore. Trust me I have been through this experience before first with the Sharp PC series and then Psion (see my sig below).
I've said this elsewhere on these forums and I'll repeat it again.
"Even the day that Sharp completely pulls the plug on the Zaurus line it will not die unless this community and others like it will let it die.
The Zaurus is one of those rare products that has dedicated communities behind it that strive to push it past the pigeon-holed niche that Sharp has decided to stuff it into. I consider myself honoured to be a part such a great and helpful community like this one."
Well that day has finally come; if we stick together we can move past this, continue to grow the Zaurus experience and make it a legendary product with an active supportive hobbiest community like the Tandy Model 100, the Commodore 64, Atari 2600, and Sega DreamCast communities.
We have alot going for us. The various 2.6 kernel distros (sorry ROMs) are coming along nicely thanks to the OZ, pdaXROM, and Angstrom teams. The 2.4 kernel distros (sorry ROMs) are either nicely polished (Cacko) or very close to it (Pdaxii13) thanks to Maslovsky, Meanie and the pdaXrom team. So keep the faith.