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Common advice is not to delete products that have sold as sold items help the overall "health" of your store. (Plus it's just neat to be able to go back and see what all things have sold in the past.)
So for my handful of rare products that have both sold and been determined as definitely discontinued, I created a hidden category titled "Discontinued" with the intent of moving said products into it. That way I can remove them from their orig category in the back-end for better organization without actually having to delete them.
The issue is that once an item as been flagged as Discontinued in the back-end, the only options available for it are Delete and Transfer Design. Even the checkbox to include it in a bulk action is grayed out.
So you can only either delete it or be stuck with it forever sitting in whatever cat you happened to have it in when it got marked as Discontinued. 😥
It would be super if you could bring this one option back for Discontinued products.