Huh, didn't make the news here until this past week. I can confirm that the layouts (with the exception of two that were on loan to the museum) -are- going to be auctioned off.
This was posted previously on September 26th and can be found here:
http://cs.trains.com/mrr/f/88/t/238310.aspx
Sadly, I learned late last week that Clarke Dunham's "Railroads on Parade" would be closing it's doors permanently after Columbus Day weekend. Finally got over there to look it over. Awesome stuff. If any of you are close enough to Pottersville, New York I'd highly recommend you make a trip next weekend to visit it before it's gone for good. Once I figure out how to move pictures from my phone to my comp, I'll post some of the ones I took for those of you who can't get there before it's gone.