I don't think that's a rumor, but is pretty much confirmed as accurate. BestBuy.com no longer has the 80GB model in stock which is a good indicator that something is going on with that line of products. They are, apparently, still going to maintain two SKUs, but the 40GB model is sticking around while the 80GB one is getting upgraded.
As far as a price drop - it's all rumor and remember: WB was going to stay format neutral.... right up to the point they decided not to. There will be no price cut on PS3 right up until the day the price cut happens. They aren't stupid: You do NOT announce a price cut weeks ahead of time, you do it the day of the cut.