They go and upgrade it:
Your Microsoft Office Live Workspace beta account is about to become even better. You already know it’s a great way to store and share documents, and soon it will come together with Windows Live SkyDrive to become a great way to view, create, and edit documents from virtually anywhere.
Part of the reasons I was going to stop using it was the fact that it felt like an abandoned project. Combine that with Skydrive which felt like unrealised potential due to not having an API and we might be in for some more fun.