SonicBlue indeed did go bankrupt. D+M holdings purchased many of the assets and has (at least in the press) indicated that they will continue to support the existing customer base.
If you had asked the same question 14 days ago, I would have said.....well, perhaps you should wait. As it stands now, I think that the Replay line is as viable its ever been.
Just my lousy $0.02 worth,
Matthew in CO.