As much as I love WordPress, I am also a firm believer in competitive business. But that’s not why the news of Journalspace’s demise is so painful. It’s the ‘how’. Apparently, a RAID setup was their only data backup they had in place, and that doesn’t protect you from some types of threat. Most notably disgruntled former employees… Data gone. Blogs up in smoke. Ouch.
They’re selling off the domain names and trademark to cover costs, so chances are a new site will eventually emerge.
P.S. The Google ads on that page promote backup solutions… double ouch.