Same thing happened when they bought Omnisio. Took a fabulous site (basically a special-purpose YouTube for presentations, with the speaker video on one pane with slides in another pane), and just buried it. The sad truth is that acquisitions are often real swell for the founders; not so much for the users. As time goes by, it makes me progressively more wary of relying on services provided by startups, sadly.
Yeah, I was always cautious of recommending startups to friends but I let my guard down with divvyshot. I had several pissed off friends who were trusting a service that new for the first time ("never again"), so now I very rarely recommend startups--and if i do the "but don't trust them" caveat is longer than the pitch itself. This is where apps that revolve around smaller, fluid, and less personal data have an advantage i think (like Instapaper). And these photo sites are like "hey we're so nice, we're letting you export your photos before we shut down." Newsflash, I already have the fucking photos thanks. How about you come over to my house and upload all the photos to another random site on my shitty wifi.