It is legit. The bboard post stated that it was a difference in staff philosophies. To quote:
"It is no longer feasible to keep Kingsmouth open. We've been struggling for a while - as you know - and trying to fix everything while keeping the machine running.
"I've made a variety of compromises from what I'm comfortable with in order to entice volunteers onto staff. Tonight I reached a breaking point: a compromise I simply will not and cannot make, which unfortunately means that we won't have the manpower to run the game on a day to day basis.
"We are not going to switch the game off at the server-side so that anyone who wishes to has the opportunity to RP out their goodbyes and exchange contact information."
Soft RP remains open. Staff won't process jobs or do XP spends. It's at least a 6 month window. They are planning on something new and totally different. Shavalyoth is, at least.