On one hand, I feel bad for the employees who are losing their jobs here. OTOH, Lucasarts died a long time ago. Around the time the Phantom Menace came out, the studio shifted from "Making the Best Adventure Games ever and pretty much defining the genre for a decade" to "Look! More star wars games! Buy our star wars games! Everyone loves star wars!".
At that point they pretty much started telling their long standing fanbase to go screw themselves. They Canceled some very promising projects. They forced bioware to rush KOTOR 2 out the door so they could make the christmas deadlines(resulting in the substandard ending we all know). The adventure games that did come out were decidely crappy(Monkey island 4, anyone?). Ron Gilbert and Tim Shafer had long since left to work on their own projects. Fortunatly Taletell picked up the mantle and ran with it.
RIP Lucasarts. Your soul died long ago, your body has finally followed.