Interesting...I was assuming 2006 would be too soon. The '05 MY has alreaddy begun! I believe this has to a be a typo or missinformation on somebody's part...
Also, 2004/'05 Insights are actually being called "2004/2005 Honda Insights"
http://www.purehonda.com/honda-insight.htm
http://www.newcarinsure.com/honda-insight.html
OK, so this is what I'm speculating.
1) Since production of Honda Insights just switched factories, they're definately not abandoning the Insight project.
2) 2004/2005 Honda Insights will be the last MY for first gen Insight. Why else would they bunch them together like that? Unless it was to save 2005 Insight buyers the 2004 MY tax deduction (as the tax deduction is going down $500/year till its phased out completely).
3)We can count on a 2006 MY 2nd gen. Insight. (Although, I wouldn't be surprised if they changed the name) Maybe even a 2005 1/2.