Now that its discontinued if you go to an apple store with an issue with your iphone 5 will they still replace it with another iphone 5 under your 1 year warranty??
Yes, just because the 5 is discontinued, there is still PLENTY of stock, and plenty of refurbished units to replace other phones with. They still have 4S, of course they will be able to replace your 5 with another 5. No you won't get a 5C/5S.
First break and first replacement under Apple Care +
Oddly I was going with the impression of paying the $50 CAD for a replacement but on some technicality I didn't have to pay. I wonder how they would manage if your under applecare and need a replacement at the tail end of your 2 year coverage!
I just replaced my 64GB white 4S using AppleCare + two days ago and they haven't made this particular configuration for two years now. You'll be set for as long as your AppleCare is valid.