Wow, if that's where this is headed, I'm likely out as well. With the miniatures, as well as the Attacktix line, why do they need another "wee" line? This is quite disappointing to me, as Unleashed was one of the lines I enjoyed the most...and it really seemed to be gaining steam. Hopefully this is just rumor as of now, and we won't see the 7" line disappear totally. It isn't as if they have exhausted the options for that line yet, there are so many characters yet to be made, even if they didn't get to "backgroundy" with the selection. Here's some I wouldn't mind seeing:
Lando Calrissian (Bespin or Skiff Guard)
Princess Leia (ANH or Boussh)
Han Solo (Bespin or Endor)
Luke Skywalker (Bespin or Tatooine)
C-3PO and R2-D2 (maybe with R2 'splodin like at the Endor bunker...with 3PO reacting behind)
Stormtrooper (make it more available), Snowtrooper, Biker Scout
4-LOM, Dengar, Zuckuss (continue the Bounty Hunters)
"Old" Ben Kenobi
Jedi - Fisto, Koon, Tiin, Shaak Ti, so many Jedi could be used here.
Clones - More options here as well.
There are a lot of directions they could still go with the line, easily enough for another couple years. I've always tried to give Hasbro the benefit of the doubt, but this really seems like a dumb move. Take a line that is well done, universally liked, and gaining popularity with each wave...and cancel it. Move to a 2" scale that competes with your own other "new" lines. Man I hope this isn't true.