The design concepts will be integrated into future processors. All this is rally saying is that IBM is pulling out of inventing direct successors to the Cell itself -- it doesn't say anything about Toshiba (who could still continue Cell development, if they chose, and will certainly continue to reduce the Cell die size, to produce PS3s even more cheaply), nor does it say anything about IBM/Toshiba ceasing production of the original Cell.
The Cell will live on, in concept, in pretty much every high-performance CPU down the road. Removing the Cell branding (which is all IBM is doing, really) merely allows the CPU concepts that the Cell pioneered to evolve faster (at least via IBM).
This announcement is the equivalent of Harmonix announcing that they won't be making Guitar Hero any longer... and then going on to make Rock Band.
