Yes, iGoogle is going away in 16 months. I've heard from a few people who were crushed by this, but 16 months is a really long time for the Internet these days. There's plenty of time to develop new habits and start using new devices.
Now, I'll confess that I'm a little biased. I stopped using iGoogle regularly quite some time ago. I've got widgets on my Android phone, so it seemed redundant.