Ford is letting Mercury fade away. The announcement was made almost 2 months ago, with little fanfare (probably how I missed hearing about it till now despite being a Ford guy). 2010 will be the last model year for all Mercury models. Ford is phasing Mercury out so they can focus on the Ford and Lincoln brands, much like Harley Davidson has phased out the Buell line to refocus itself.
Overall I think it will be a good thing for Ford. My first car was a 1994 Mercury Tracer, so it is very sad seeing the brand disappear. Mercury will always hold a certain place in my heart.