Nooooo! It's not exactly a surprise that Apple is discontinuing the iPod Classic. But I'm still dismayed at the lack of any suitable replacement. I have hopes for the Geek Wave when it comes out.
Tackling the problem on the other end, I might be willing to be less fetishistic about carrying my entire audio collection on one device if there were software that made it easier to ensure that the things I actually wanted to listen to were on the device at any given time. (I suppose I could probably manage this with a collection of smart playlists in iTunes - ideally I would like something like: fill up the iPod with a) music I've purchased recently, b) stuff I've been listening to a lot lately, c) unplayed podcasts, d) the next few unplayed Doctor Who audios from Big Finish productions, e) fill any remaining space with a random selection of music. I think that most of those could be done in a smart playlist, although I don't think that iTunes really understands the concept of a sequence of audio plays.)
Of course, my current iPod Classic is still going strong, despite my having partially backed my car over it some time ago. So it may be some time before I have to worry about replacing it.