This speculation happens every time, and I'm afraid everytime.
I'm sure I fall in to a very niche section of the community, but I have over 130 GB of music. Sure, I don't need to carry it all everywhere with me, but I want to. For this, I have a 160 GB classic. I also have an old 120 GB classic that I use strictly for video. It houses every season of Entourage, The Office, and Weeds, as well as a number of movies. I use this to carry my videos around to various TV's around the house and friend's places, and I don't know of a better solution.
But, alas, I really do see them axing it sooner rather then later.