KISAKI has edited his blog entry about the matter a bit... but the bits regarding the band are more or less the same. Basically, in my interpretation of the post, LIN is not going on hiatus or disbanding as lots of people are saying. However, they were in the middle of recording an unannounced release with Shirakawa, and that release has been effectively cancelled. All activities related to that release (new costumes, event lives, etc.) have been postponed as well.
Unless something happens, the band will still DECIDE on a new release in some months; it will just take longer than anticipated. And until then, all live appearances should continue. So, it's not really that dire for the band.