I just called play.com and asked about the removal of the 32GB version - no stock. I then asked about the 16GB version, it is in stock. However they will not be adjusting the price in line with the HP price drop, it will remain at £349. I asked if that would be subject to change and she said it will absolutely not move from there, the sales team have been categorically told from above.
I'm closing my play tab now! If anyone else wants to confirm, plays number is 0845 800 1020 - option 5 from the menu.