cheffe55 --
Yes, Microsoft was planning on replacing Project Online with Project for the Web. So, for the past 4 years, Microsoft spent all of their development money on Project for the Web, and stopped doing any development on Project Online. However, at the Ignite conference several weeks ago, Microsoft announced that they ARE NOT going to eliminate Project Online after all. They will continue developing Project for the Web after rolling it into the Planner app. And if we get lucky, maybe they will start throwing some development money at both the Microsoft Project desktop application and Project Online/Project Server.
Hope this helps.