Good news, everyone! Oh wait — not so good news:

If you want to buy an iPod shuffle or iPod classic from Apple, you should do it sooner rather than later. We’ve heard those two iPods are getting the axe this year. (Courtesy TUAW)

Assuming this is true, is it likely that Apple is going to release a 128-gigabyte iPod touch this Christmas, so that die-hard music lovers might find something in their stockings that comes close to suiting their needs? I’m guessing not. The mp3 player market is dead. They are to this young decade what digital watches were in the ’80s: formerly sleek emblems of progress reduced in price and stature until they ended up being sold out of gumball machines.

Time was that Apple needed to offer a high-capacity iPod model to stand out from the competition. Now that race is run, and music playing is just one more function on a smart phone, or a handheld gaming and Internet device (to describe the iPod touch accurately). If the rumor is true and the shuffle is in line for the axe along with the classic, that means that the iPod nano will be the only remaining device Apple makes whose primary function is to store and play music — and i think it’s reasonable to assume that the nano will itself continue to exist only until Apple can price an iPod touch below $199. (Side bet: if the above rumor comes to pass, watch the nano drop to $99.)

So why is this a big enough deal that I keep harping on it? Because there is no smartphone or iPod touch that can do what an iPod classic does: hold a library of songs numbering in the tens of thousands, all stored locally and accessible without a network connection. And it does not offer a hardware interface optimized for playing music.

Don’t mistake this for sentimentality or Ludditism. (Ludditery?) I recently started using Rdio and was sufficiently taken with it that I thought it might obviate the need for my iPod classic. It offers a sizable library to choose from, the mobile app is pretty slick and it has some nice music discovery tools. But it doesn’t offer the granularity of iTunes: the ability to rate songs, tag songs, construct dynamic playlists or change metadata. In short, it doesn’t afford the kind of advantages that come from owning and curating your own music files. So Rdio on my iPhone is like having two different, mutually incompatible music libraries, one of which has everything by the Beatles (in mono, even) and not much else, the other of which is so ungainly it has 12 different songs called “Learning to Fly,” just because I wanted to see how many there are. (There are more than 12, but it was starting to get ridiculous.) And if I want to, say, make a playlist with “Flying” and Kate Earl’s “Learning to Fly”? Well, that ain’t happening. I can put Kate Earl on my iPod, but I can’t put the Beatles on Rdio.

If the classic is going away, then I and thousands of others like me are marooned. Our choices are to either keep our devices operating until Apple offers a new product that can serve our needs (mine is already three years old and on its second battery), or jump ship for something else. Such a change, for all I know, may not be possible, or if it’s possible, it may not be worth the trouble. Leaving the iPod will also mean leaving iTunes, and the information that app has stored about my music — my ratings, my playlists, which songs I’ve played or skipped in a given time — is, given the nerd-tastic way I listen to music, almost as valuable as the music itself.

So while I am chagrined to arrive at the end of the road with my iPod, I am hopeful that some competitor out there will finally seize the opportunity to build a music player that offers us what Apple will not. People are still buying vinyl records, for god’s sake. You mean to tell me there is really no return on catering to rabid music listeners — people who have already demonstrated their willingness to devote a lot more of their income to music than the average person?

Anyone want to sell me an mp3 player?