I noticed that today too. Went in to pick up some of those wee flashing LED's and had a look at the C cell torch. As you say, it says 1W now.
So I just bought another 1W AA, not sen them in stock at my local store for months but they had loads today. Oh and they are £8 each now, last time I bought two they were a tenner each.
Thats me got 3 on the bike now. Ye canny have enough light, ride home tonight proved so. 3 are better than two, going for a fourth next.