I was at CES also and asked the person at the booth (well, it was more of a pedestal with a couple products on it and a person standing next to it). I was so focused on asking the question when I finally found them that I didn't even notice his name (if you're reading this, sorry!).
First off, it seemed like he was kind of disappointed when I asked about the PhotoBridge. I guess that's to be expected since they weren't even showing it there. I asked if anyone else had come by asking questions about the status of the PhotoBridge and he said 'a couple'.
Anyway, he basically said they are finishing up work on the Soundbridge Radio and once that was done they expected to finish up some remaining bugs and have a final version of 2.0 out. He mentioned some issues with streaming left to work out and it would be out 'soon', which anyone who has anything to do with technology knows could really be 'not soon' depending on lots of factors.
I also asked about availability and he said they were shifting production to China, undoubtedly as a cost cutting measure. I don't know where the original PhotoBridge was made and I'm too lazy to go look at it right now, so maybe it's only a different factory.
After talking to him I've resigned myself to believing that the PhotoBridge is what it always will be and I don't have any hope for a new version of hardware or software. I'm disappointed, but not angry and I still hope Roku succeeds even though for music streaming I've bought the competition specifically because of the way the PhotoBridge was handled. Just some regular communication from Roku would have gone a long way.
It's obvious to everyone they are more interested in the sound products because that's what is selling and it only makes sense from a business standpoint. I don't know how many PhotoBridges they sell/have sold, but they were early on the curve and sometimes that ends up not working in your favor (or our favor) in the end.
I'll end on a more positive note. The person I was with who knows virtually nothing about Roku said he didn't get the same impression that I got about the end of the PhotoBridge and felt that it seemed like it was still a product they are interested in. So, it is definitely possible I'm just jaded, so take this all with a grain of salt.
Also, it doesn't make sense that they'd shift production if they were going to discontinue it anytime soon.
P.S. There were a ton of media streaming devices (from standalone to integrated with TV's and DVD players, etc), so there will be a lot of choices in the market very soon.