Dream on. You just needed something to talk about and saw your opportunity. Samsung won't drop the Note for two reasons: First, it's a different device, with its own crowd, its own market and a trademark too valuable to squander.
You argue that the Note and the S series have reached a certain parity, making the two devices superfluous. Ah, but the marketplace doesn't run on logic. It runs on sales. The Note and the S series may have the same size screen, with a feature set in common, but you're downplaying their differences.
The Note is flat and rectangular, with curved edges and a stylish pen that adds a world of functionality. It has a flagship distinction that means something in the market. The S series looks more like an iPhone, allowing Samsung to offer its own iPhone alternative with a flat display but a contour that offers another curved brick. It doesn't have to make way for the S pen so it can sink that real estate into something less aimed at productivity and more aimed at the consumer class.
Second - and equally important - staggering Samsung's product release between these two gives Samsung the ability to offer something new every six months rather than place all its bets on a single device offered once a year. It's true: whatever Samsung offers either device today will be on the next device in six months, but that means Samsung can have something new on tap every six months, whereas Apple is committed to its iPhones as a once-a-year product launch.
This isn't the first time some leaker has announced that the Note and the S Series are about to be streamlined, but it never happens. Why it doesn't happen is simple: You can make the S Series as attractive as you like, but you can't afford to miss the opportunity to have the next great thing available in six months rather than a year.
Logic doesn't run the market. Sales do. As long as Samsung benefits from this bifurcated product launch, it will continue to do so. The year it forgets this, it will be quickly reminded that nobody wants last year's technology. They want the new new.