I wouldn't bee too surprised if Apple started to phase out the eMac, after all, it was originally intended for the educational market only.
There is one part of me that says keep the eMac, it's nice to have an all-in-one computer with the monitor, speakers, and mouse. The eMac still seems like it's well suited to the educational environment, I mean you can just walk off with an eMac like you could with a Mac Mini.
The other part of me says ditch it; at least for the consumer market. You can get a Mac Mini + your choice of monitor, keyboard, and mouse - most likely at a lower price than the eMac too.
And seeing the eMac go to a G4 iMac style would also be nice, but (referring the the LCD) would just make costs go up. Personally I'd rather have a faster computer and a slightly larger monitor than something like the iMac G4 or G5. (and I own a G4 iMac 😀 )