I think it's pretty clear, for better or worse, that Nokia removed the Xenon, because the capacitor won't fit in a sliding form factor. And I think Nokia likes the sliding form factor, because it allows them to put bigger screens in the phones (which is probably a more popular feature than the flash, for better or worse). I'm not justifying this. But I do think there is a logic there which is not odd, but understandable.
That said, the Xenon may have been a big, if not the main, factor for the N82 at the time it was released. But I wonder if that logic will continue to play in the current market. I think the market for this phone probaby isn't N82 owners who want to upgrade. I think it's people entering the smart phone market or upgrading from a whole lot of different previous smart phones, who want a good smart phone and a good camera. They will have to look around at the current competition, not two year old models like the N82. What they will see, in camera phone competition, is the Sony Ericsson C905 and maybe the Samsung S8300 (I don't really know the Samsung phones that well). The Sony Ericsson does not have the greatest UI and OS and the Samsung will probably be a lot more expensive and to me they are often catch all phones that don't live up to the hype in actual execution and quality. So the N86 will stand out, perhaps, as a camera that can hold its own with the competition, but also the best all around phone in terms of other features with the most mature UI. And I think that is the customer for the N86. Justified or not, there will probably be a perception that the C905 has the best camera and for people who only care about that, that's the phone they'll get. If they're just looking at specs and want what seems like the latest and greatest, they'll get the Samsung. But if they want a solid all around phone that can hold it's own as a camera with the competition, it will be the N86. I'm not saying that this describes the actual pros and cons of these phones. I just think that will be the perception and that will be what drives the market. I think it's a mistake to assume that the upgrade path from previous N series phones is what drives the market and what determines the success of failure of a handset.