iWeb is dead. Long live iWeb!
Face it, few used it. Those who did faced problems. Hosting sites have their own embedded builders. It's an uphill battle. I think iLife is moving into a media suite, therefore, iWeb seems superfluous. The cutting of XServe was also evident of a consumerist model. But I think apple is planning something. Be it embedding iWeb into XCode, (Which I love), or a brand new programming suite that includes iWeb, XCode, and the rumored WYSIWYG iOS app builder. Who can say?
PS: I am hoping and praying they don't do away with iDVD. It will probably be the first to go, but I want it!