Not exactly.
The 4th Gen iPods still support firewire.
For "full-sized" iPods, Firewire was discontinued starting with the 5th Gen iPod. Firewire has been omitted from all current iPods including the Nano and Shuffle.
Apple has never publically stated the reason for abandoning firewire as a transfer method, but there have been many unofficial reasons stated in this forum. It is likely that several factors were considered in the decision to omit firewire, and not just because "there's more USB than Firewire out there".
In my opinion, Apple did not drop the ball with this decision. I, too, wish that firewire was still an option, however it's something that everyone will need to get used to.