The airline has rebranded the "new economy" service to "premium economy" because "premium economy" actually clarifies the brand far more, by saying that it is a cabin for pax that are paying full-fare & are wishing to recieve service that is better than economy but less than business. "new economy" was fine when it was a brand new & innovative product, but now most major airlines on longhaul seem to have developed a premium economy cabin.
I doubt that the business cabin on shorthaul flights will be dropped, but the service will have to be refined. Most people on European flights buy a business ticket more for the flexibility of the ticket, and the convenience & lounge access on the ground, rather than the actual in-flight service, but if bmi want to continue having people pay their high prices for C class they will have to refine the service they offer onboard. I think that's more likely than the service being dropped, as bmi do well in C with business pax!
The only rumour I've heard about anything being dropped at mainline is free food & drink in Y. I've heard we're going down the ZB road, and offering high-quality snacks, sandwiches, light meals & drinks for purchase in economy. Any word?