There just announced that they're scaling back their consumer service to focus on their technology platform. The basics of the pullout are on their official boards:
"Today I would like to announce that There is changing its strategic direction to focus on our technology platform.
We will continue to run the consumer service, but will need to make changes so that we can better align our costs and run this service profitably. As we go forward we will continue to evaluate the consumer service and our ability to meet our financial goals on an ongoing basis."
Presumably There will be continuing their work with organizations like the US Army. Though they make it clear that this isn't a shut-down of the consumer world, it can't be good news for the development of virtual worlds beyond the typical D&D-inspired MMOGs.