2005 might be the last year of the R1 series. When first introduced in 1998, the YZF-R1 brought the superbike game to a whole new level. Since then Suzuki, Kawasaki, and Honda answered back with their halo-bikes. The current ZX-10R is probably the best current competitor to battle against the YZF-R1 but Suzuki will be releasing a new GSX-R1000 to play against the two.
The idea of the YZF-R1 to be phased out sounds a bit too extreme. But it's not out of this world and is strongly possible due to some reasons. There have been strong rumors that Yamaha will introduce the YZR-M1 MotoGP bike into production for quite some time now. If this is the case, the bike will replace the YZF-R1. The YZF-R tag doesn't have a strong history like the GSX-R moniker. Suzuki must keep the GSX-R label because the company is dependent on the name like Ducati is with the Trellis frame as Honda is to the twin spar frame, which is their marketing stratagems. Don't get me wrong the YZF-R series are important but I doubt Yamaha are strongly tied to name like CBR is to Honda and GSX-R is to Suzuki.
The YZR-M1 might be the bike that will replace the current existing YZF-R1 bike. Sure, motorcycle salesmen will tell purchasers that the 2004 YZF-R1 has technology and engineering information trickled down from the MotoGP competitor to it. This is true but the YZF-R1 is no MotoGP bike. The R1 does not weigh 320 pounds with oil, petroleum, fluids in the bike. Like the MotoGP bike, the engine is slanted to allow the frame to go over it, which makes for a narrow frame but again it is nothing like the M1. The YZR-M1's 990cc engine has a stroke shorter than the R7. The weight of the engine is lighter than R7. Even the Deltabox chassis is narrower and shorter than the R7, which the new R1 still feels bulkier to the R7.
Some will argue that the reason the R1 is nothing like the M1 is purely on the idea that the M1 is a pure race bike prototype. Yet a tone-down production model is possible. Even an affordable one isn't crazy either. I doubt Yamaha will introduce racing technology like Idle Control System (ICS) to the public with a production bike. I doubt that it will have all of the carbon fiber parts and crazy engine outputs but what will it be since horsepower numbers climbing every year. Not sure how likely a decreasing or a possible horsepower ceiling limit will be set since there seems to be no sign of that yet, which a 200 horsepower bike might be a reality in two years time. Ducati will be releasing the Desmosedici street bike, which helps bring leverage to the rumor that a GP bike can b a production bike yet again the Duacti will come with a high-price tag. Again this a rumor and I am reporting what I know and posting my personal knowledge to the topic