If there's a replacement SKU for the 120GB right around the corner, odds are that inventory levels on the current SKU are low enough to minimize losses on the inevitable clearing sale.
I seriously doubt SCE would keep them in production for the sole purpose of selling them at a loss, whether it's in the form of a bundle or otherwise.
You have to figure that any redesigned SKU, regardless of larger HDD, will cost less to produce than the current SKU, meaning, even selling the 120 GB SKU at the SAME price as a 160 GB hardware tweaked SKU would still result in lower margins.
In a nutshell, if there's a replacement 160GB SKU incoming, and there's a 120GB SKU clearing sale, act fast; they'll probably be gone within 2-3 weeks through most retail outlets.
