As I have been very interested in the newly released 2.6.30 Linux Kernel, I was browsing around the ubuntu kernel wiki and I've found and interesting tidbit:

"...Note that the i386-server flavour is being dropped. I can think of no good reason to continue to support a 32 bit server. The 32 bit -generic kernel ought to suffice for those headless implementations that have used the -server flavour in the past, such as home gateways. All of the -server unique settings can be made at runtime to a -generic{-pae} kernel, the most important of which are I/O and process scheduler settings."

The full scoop on the karmic kernels on x86 and other implementations can be read here. Personally I think that this change is probably a good notion, with the addition of a new architecture [netbook remix] requiring plenty of attention, the deteriorating demand for the i386-server build, it makes sense to free up some extra time and allow more focus on the architectures that are used most often.