the n770 is still partly supported, at least with critical stuff, and although the official release is v2006, there's a hackers edition 2007 which is basically the 770 kernel with additions and as much of the v2007 edition libraries and packages for N800 as possible, so it's fairly up to date. I imagine there will be an n770 hackers edition which runs 2008 at some point.
of course, the 770 being a bit memory limited with slower CPU will struggle a bit with larger base system, but it means its still useful.
and there's still a fairly big software library for it.
however, after saying all of the above, I think that Nokia have not played nicely in relegating the 770 to the back burner, since provided they write their s/w to the appropriate standards, and the 770 has many common attributes with 800 and 810, then surely all they have to do is build a kernel for the 770 (ok, maybe they'd have to update a few driver modules) and all the user space stuff should be identical?