The DS Lite could be fading into that hardware manufacturing plant in the sky. Go Nintendo reports that the system is being discontinued, according to a memo sent to GameStop stores.
New DS Lite systems have been discontinued and stores will no longer be replenished on this product. Once your store sells through its current stock of these units, please remove any corresponding DS Lite (Crimson, Black, and Metallic Rose) display boxes from the sales floor and discard.
If true, it had to happen eventually. The DS Lite may have been the model that set the world on fire, but now that the DSi, DSi XL, and 3DS are out, it's the oldest in a family of four and could cause confusion in the marketplace. On the other hand, it's also the cheapest model (MSRP $129.99 to the DSi $149.99), so taking it off the market could cut off potential sales from those looking for a cheaper handheld. At the least, I expected it to drop to $99.99 before Nintendo gave it the axe.
We've contacted Nintendo regarding the rumor, and we'll update as more information becomes available.