I thought the fact that Flagship was foundering had more to do with Hellgate being done than the Diablo 3 announcement.

Update: Flagship is shutting down their official forums today. I guess they're sick of reading all the doom and gloom.

I don't know why anyone really cares if Flagship is still technically open or not. The only reason it's still alive is so the remaining staff can try to milk every last cent out of it.