It is at retail. Nintendo may be making them, or still have stock, but stores no longer carry it. Best Buy, Target, etc all have it in their system as discontinued and no longer ordered. I saw it with my own eyes when I was scouring the town for my system. I had employees log in to computer and show me order status.No it isn't.
It's why you can go to BB/FS and buy an original 3DS for only $129 instead of the usual 169 MSRP. It's on clearance.