I’ve noticed that most of my friends (and myself included) are much more interested in posting stuff to Facebook now. I think this is for several reasons:
1) Lots and lots of people are using it (stronger network).
2) The interface is easier to use – you can post links and photos and so forth with no HTML needed (LJ always makes you go through a couple gyrations to do stuff like that, FB makes it painless and prettier)
3) It’s shorter attention span; less content, and updated much more frequently.
I don’t think LJ can do anything about 1 and 3, but they could at least be trying to make their product slightly easier to use. All they have to do is replicate the Post Links and Post Photos features the way they have them set up on Facebook, and then make the Friends page smaller and more wall-like, the way Facebook does it. It’s the interface, stupid!!