Hepcat was very upset about this news as well. Read Callalillie on the demise of Polaroid:

This is totally last week’s news, which should give you some indication on how behind I am on everything these days, but Polaroid has announced that they will stop producing classic instant film as soon as they have made enough of it to last through 2009. I guess this does not impact peel-back film that much, as other companies such as Fuji make compatible versions. But for regular instant film for cameras such as the SX-70, I guess we will have to rely on a different company starting to produce the packs. This happened with the Time-Zero film, which is made as a specialty item now- and is priced accordingly.