Over at Second Effects, they have a theory on the recent Linden Labs Layoffs, relating it to the current shift in the market to ‘ultra-simplified’ computing.

This spring the iPad was introduced and it is a monstrous hit, so much so that it’s expected to be in the hands of tens of millions of people a year from now and many more after that. I'm not saying we should run SL on an iPad, but there's an interesting phenomenon taking place: the iPad has revealed that many people want ultra-simplified computing. Its amazing to watch seniors, very young children and those unfamiliar with computers to immediately use an iPad. It turns out that many people (but probably not you) just want instant on, rtouch and a reliable simple interface.

via Second Effects: Chasing the Bar: The Linden Lab Layoffs.