[UPDATE: Probably not true.]SCEE President David Reeves revealed in an interview that the 60GB PS3's long-overdue price cut is actually a fire sale, at least in America. When the last one is sold, it will be just that—the last one. It's entirely possible we could see a "clarification" of the statement, but Reeves was pretty unambiguous in his language.
So once the 60GB is gone, that will be the end of the 60GB then?
In America, yes.
Why not offer the 80GB model in Europe?
The difference between 60GB and 80GB is not really necessary. The difference in cost between a 60 and 80 is just Euro cents; it's nothing, because the cost of memory is so small.
Probably we could have gone for 80GB, but does it really make any difference? We just know that we get a better supply on the 60GB than we will on the 80GB. So we chose to continue with the 60GB until we find that we can get something better, maybe lower cost. It just didn't seem necessary to us.
Update: Yes, it is being discontinued