I didn't want to really get into it on blog (though I did say many things in comments to various people), since I realize it's feeding a rumour mill. But since someone else has now stated it, I feel comfortable saying it too. Given the kinds of cuts SUP made, it's likely that LJ is going to start down the path of fading out.. unless they manage to get sold.
It's what I've seen in the business world, and particularly in the tech business world, for a long time. Yes, none of this is guaranteed; but it's likely.