I have no problem with a digital edition, in fact I welcome one, but you guys are really handling this in a fantastically stupid way.
First, this smacks of desperation. If you're going to have to go digital or go belly-up, why not say so. I could pity you for ganking my paper subscription if the alternative is to have none at all.
Second, people paid for a paper mag subscription. Now you're changing the terms. Yet I still hear no offer from LJ to reimburse the remainder of peoples subscriptions since the terms have drastically changed. I'm no lawyer, but I'm pretty sure that's as clear a case of bait and switch as I've ever seen.
Finally, what really are we gaining from this? We can't line our rat's cage with pdfs, or (maybe) hand our copy to a friend when we're done. They're not so good on the crapper either, as the other fellow so eloquently pointed out.
Total fail on the delivery of this probably mostly unwelcome news. If you guys need a marketing consultant this badly, you have my email. For the sake of all who love this rag, get someone with a clue about how to treat customers before you toss out the next surprise.