To paraphrase a local writer - reports of its death have been greatly exaggerated.
Anyone that thinks LJ is going anywhere a) doesn't pay attention to the IT market nowadays and b) clearly doesn't know much about how LJ is structured.
LJ is fine. I work a few blocks from them and they are fine. They were overstaffed there anyhow (sad, but true). Working at a web company I have some contact with people in many similar situations
All startup sized IT companies are having issues right now. Several companies larger than LJ have laid off people. Yahoo, Flickr, etc. Other startups too, even ones that are doing well (like Zivity). It's belt tightening time for a lot of companies around here.
That said - backup never hurts. I used LJArchive, because having a searchable database of my journal is awesome, and I wouldn't have known about it if this whole fuss hadn't started. Shame it's windows only, but then I have a Vista VM on my Mac, so that's a start!