See this issue for more details: http://drupal.org/node/411038
My feeling are that views_slideshow should be an API for all slideshow scripts, enabling a single module to be installed that can be extended by contrib modules to use its API for creating any type of slideshow effect.
Comments
Comment #1
redndahead commentedMarking as postponed for now and we'll pick it back up if anything comes from the discussion in that thread.
Comment #2
redndahead commentedViews Cycle and Views Rotator are now recommending views slideshow. Marking as fixed.