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and then Kaz Hirai came out and said that SCEA was wrong and it is being discontinued.

http://www.gamespot.com/news/show_blog_entry.php?topic_id=25772777

Following a flurry of confusion, the matter was apparently settled by none other than Sony Computer Entertainment's president and CEO. Speaking to Norwegian game-news outlet VGTV, Kaz Hirai said in no uncertain terms that the 60GB version is being phased out.

"From a hardware perspective, the $499 price adjustment we did for the 60GB version for the American market, we're no longer in production for that product," he said in an on-camera interview. "Once that product is gone from the retailer shelves, then we're back to a $599 SKU only, so it's not like we have a two-price strategy in the US market. We found out very early on how consumers react to having just one SKU as opposed to two."