>Okay, who's the UT accountant? Surely there are economic repercussions to a plan like this. (Aside from the obvious changes in pricing)
>It seems to me that nothing is gained, financially. Wouldn't disposing of the 1 cent coin simply devalue the 5 cent coin? (and so on)

The problem with the "penny" (at least in US) is that they are very close to being a net loss for the government. When you add together the cost of the copper & zinc, and the cost of production & distribution, it is barely at the break even point now for the government, and very soon it will be a money-losing coin. At that point, they will likely obsolete them, just as a fiscal matter, rather than because they're mostly a nuisance to many of us :)

All other denominations are way ahead in the profit column for the government, so removing them lacks the same incentive...