Yes, surface mail has been discontinued. I had to send the M-Bags by air, but it was still MUCH CHEAPER than sending them through the normal post. One of the boxes was the same cost as sending 2 M-Bags.
Make sure you ask your post office if they do M-Bags before you show up with loads and loads of books. I come from a small town in New Hampshire, so I went in personally and had a chat with the mail carriers before doing anything. I'm glad I did because they didn't know what I was talking about! After some research, the lovely postal workers figured everything out.
Both of my M-Bags were 60-something pounds (the weight limit). It's so weird how one bag arrived weeks before the other. Also, the first bag was definitely smashed around a lot - one of the boxes in the bag had opened! Luckily the books weren't too damaged...the soft-covers were just a little bent (no bid deal). The second M-Bag was fine. Everything came in perfect condition.