I think the change with S&W is that they stopped listing their own SW99 (the "AS" in Walther terms aka.. "original" SA/DA config) and only list their SW990L... their own DAO config... as they chase the LE market.
Rumor related to S&W products would be more towards them dropping the SW99/SW990L products (not P99) in favor of their own "M&P" they recently released.
Since S&W is an importer of the Walther products, and has a "strategic partnership" with Walther going, I do not expect them to discontinue importing Walther into the USA.
It is also been reported from people that went to the SHOT show in Vegas as well as those with 2006 catalogs that the "AS" model will be imported again for 2006, which would also include "AS" compact models if you wanted a Walther vs. a S&W.
The SW99 .45 acp is a nice buy from S&W. That is one caliber that Walther didn't make in their P99 line.