We have heard other rumours that the FZ1 may see 2005 as its last year ever. I am inclined to believe it. It won't be revamped, altered, improved, or otherwise - it will be retired IMHO.
It seems most of the sales are going to either sport bikes, touring, or cruisers. There are very few sales of the standard class. How many FZ1's, let alone FZ6, or Bandits, or 599's do you see rolling the streets?
What are the standard bikes:
Suzuki Bandit (very old, clock is ticking)
Yamaha V-Max (retired this year), FZ1 (old tech, clock is ticking), FZ6 (new)
Honda 599 (retired last year), 919
Kawasaki Z750, ZR7S, Z1000
As the FZ6 is new and modern, obviously Yamaha will keep it around for many, many years. However, most of the other models in this standard style are old, dated; some have been declared to be retired this year, or some after.
Suzuki has just revamped its whole line of cruisers. And everyone is continually advancing their line of super sport bikes. Sadly for us standard riders, the bike manufacturers are giving little attention to this small sector of the market.
Personally, I would love to see a FZ1 revamped with a FZ6 frame and fairing, R1 engine , EFI, and suspension. But then it wouldn't be an FZ1, as such a shopping list is way too far removed from the origins of the FZ1. As a design engineer myself, I don't see this as being feasible for Yamaha. I think the engineering would be way easier (and economical) to merely take an R1 and reshape the frame to yield a standard posture (seating, pegs, grips, windscreen).
I may imagine what the FZ1 could have been, but I feel it has seen its last year. The good news is the FZ6 is here to stay.