Its not discontinued yet, but soon will be. If you are buying one today, i would definitely recommend getting a 7921. These are so much better than the old gen ones, color display, better radio quality, 802.11a/b/g capable etc...
I have not seen (and don't currently see) and EoL/Eos notice for the 7920. Have a look at the attached link that lists all IP Phones that have been discontinued (the 7920 is not on this list). When products are announced as EoL/Eos there is always a window of time to purchase the product.
That being said the 7921 looks like a very nice option,but you shouldn't have to purchase it if you don't want to.
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