http://www.lively.com/html/shutdown.html
Text:
After careful consideration, we have decided to shut down Lively.
Since Lively’s launch, we have been delighted to see the creative ways you’ve used the product. We enjoyed hanging out in Jen’s coffee house, and checking out the Brasil Party room. We got a kick out of the YouTube videos in a variety of languages telling stories about your avatars. And we’ve been awed by the elaborate rooms that you’ve constructed, using mosaic tiles and photo gadgets in novel ways.
We will shut down Lively on December 31, 2008. Embedded rooms in blogs and other web pages will continue to show an image, but users will no longer be able to enter Lively rooms and interact.
Between now and the end of the year we encourage you to capture all your hard work by taking videos and screenshots of your rooms. Thank you for sharing this experience with us. We’ve learned a lot about how users interact in rich social environments, and we hope you’ve enjoyed your time with Lively.
My conclusion:
Sometimes SL has some errors, sometimes it goes a bit wrong and sometimes its not easy operating or residing on such new technology. At the end of the day though the rides are part of the fun and there simply isnt anything nearly good enough to compete. Also as others have said SL is about the people. Its fine having the technology but if you cant transport your friends to a new grid with you whats the point of being there? Might as well stay home and kill sims in their swimming pool 
