More urban myths, IMO. As Zen and Woodsm pointed out, it is VERY doubtful that the Big S would go to all the trouble to completely redesign/toolup for a new engine AND get EPA certification for just one year's worth of sales.
As well, I agree that the B-King and the Bandit definitely do NOT appeal to the same markets, although Banditdom may see some "defections" to the B-King.....if those same current Bandit owners can get past the B-King's....errrrr....ummm....
unique (yeah, that's the word...unique) appearance.
That big 'Busa motor, even detuned, is still a fearsome (and undoubtedly seductive) piece of work, IMO. Heck, even I might be tempted to take a spin on one, as "unique-appearing" as it is.......although I'd probably have to be blindfolded and helped into the saddle by others so I wouldn't have to actually look at it....
Nope, I think that for whatever dopey marketing and/or production reason(s), Suzuki seems to want to release the Bandit as the last bike in their lineup pretty much every model year. So, US folks, keep the faith until ~February or March when the 2008 Bandits WILL hit your local dealers' floors. Remember: Anticipation heightens delight.