I don't believe that is the case. I can find no reports of OS X support discontinuation. Apple's policy is to support the OS for five years from the release date. That would put the discontinuation next November 2010. Apple has released a Security update for Safari 4 for OS X.4, OS X.5 and OS X.6 in November 2009 which would be consistent with their policies.
For your iBook... try plugging in a standard two button scroll mouse and using it until you can get your laptop repaired.
“Mac users still on Mac OS X 10.4 (Tiger) systems should be aware that there are no further security or system patches planned for these systems.” Source: www.9to5mac.com
I have a RAD TECH mouse that works fine on my iBook. But still miss the ease of track pad while in truck/airport/etc.
There were so many complaints about the track pads on Apple iBooks that company should have recalled/replaced free of charge.