I don't believe that is so. For the past couple of months, I've been hosting webinars focused on WSA. Have you taken a look at the following training videos page: Web Security Training Videos
We have an upcoming session on an overview of release 11.8 that will provide a detailed drill down on features & Integrations such as:
- UX Refresh on WSA
- API Reporting on WSA
- Custom bypass list
- Automatic Config Backup
- Updated: Interactive Walk Through
- Office 365: Exception List (External Categories)
- Threat Grid Cluster Support
- Cisco Threat Response (CTR) Integration using SMA
- Threat/Multi URL Categories
- HTTPS Passthrough (Without Certification Check)
- ISE Enhancements (VDI Support / AD Group fall back)
- SMA Enhancements (Multi-Configuration)
I do encourage you to register if you haven't done so already.
Cisco Learning Network
That question basically has two parts 1) Is Cisco distancing themselves from the WSA? 2) Are Customers no longer deploying them?
The answer to both of those is No.
I've been working with a government client for about 4 years and they've deployed WSAs in each data center we've built and will be deploying more in a new one that we're spinning up within the next couple of months. We've also deployed FTDs utilizing the FMC in each of their enterprise locations in addition to the data centers. Currently, in addition to us transforming their network architecture to an SDN solution we're also expanding the FTD security services environment. The point of all this is to say that in my experience with both products is that even though the FTD/FMC solution is all encompassing and pretty cool it does not provide the depth and breadth of offering the WSA provides in its targeted area.
As for Cisco support, they continue to develop additional security service integration into the WSA. One of these is the AMP product.