nope, it's not discontinued, but alot of department stores aren't carrying it anymore...
i know neiman's in sf and barneys in l.a. aren't getting in any new ones, so any they happen to have are returns...
you can always try to order one from bal ny or paris, or check diabro.net...
right now diabro has a rose and a black one...
you can also check consignment shops like ann's fabulous finds or real deal collection...
i just scored a fabulous 05 grey one from realdeal...
oh and yes, it does fit comfortably right under your armpit, kinda like a lv pochette...