I wouldn't worry too much. For one thing, Chumby more than almost any other company has been committed to openness and community-building, for another the software is pretty open, and lastly, the devices make people quite loyal.

But since the Chumby is not a closed, "dumb" device, it is more than capable of functioning (albeit slightly differently, and possibly at a reduced level) even if something were to happen to the servers.

Also, there is no indication that Chumby is "running out of money"... while it's obvious they've trimmed down their staff, Duane is still here faithfully every day, and issues do seem to be getting resolved (even if slowly), so I'd say they're still doing alright.  If we started seeing major hiccups in the service, then I might be concerned.

In response to bobsz's original post... as an experiment, I tried developing an alternate "service" for the Chumby, and have succeeded in at least some rudimentary aspects.  Since I don't know Flash, my solution isn't as elegant or as extensive, but it's a nice proof-of-concept that Chumbies/Infocasts will not become paperweights if something does happen to the service.

Please do not ask me for the code or further information on my "alternate service", as I have no intention of releasing it to the public unless the official Chumby servers do go dark one day.  I'd rather support Chumby and their awesome products so we can keep using the services we know and love (and which are much more refined than my homebrew mess!), and maybe even encourage them to come out with another hardware product some day*

* Yes I know Duane has stated that they have wanted to get away from the hardware business... but their hardware is sooooo beautiful and awesome, I want more!  12-inch 1280x960 Chumby please?