What happened to "LJ will never suspend without warning/notice"? Apparently, that's a rumour too, because I can see why they'd need to suspend a journal before they investigate.
ETA: Just FYI, daily_deviant, unlike PP, was not suspended by LJ; it was temporarily deleted by its maintainers until the coast clears.
Cousin of ETA: catrinella has a comprehensive resource post on the issue.
That rumour half the fandom took seriously and half didn't? Partially true. (Thanks, delaria and alittlewhisper). I knew it had to be, because the journal I first read it on was definitely not someone who's prone to fannish meltdowns over every little thing. However, it's still a relief that this crap isn't aimed at fandom specifically.
Third Rock from the ETA: Fiction is not illegal.