Except that what they're actually talking about is an account that carries adverts, and it looks like this will apply to all basic accounts including the old ones:
I've got a permanent account, but if this happens the two Basic accounts I use - the sdaleconspiracy community and ffutures_news, the account I use for game-related announcements and show on my web sites - may start to show adverts if anyone who isn't a paid or permanent user looks at them. And apparently some of the advertising livejournal runs is for things I would dislike or consider inappropriate to my interests etc.
I'm not too bothered about sdaleconspiracy since I think most of the people using it have paid accounts, but if this happens ffutures_news will certainly have to go, and I'll need to replace it with some other simple way to put news on my sites, hopefully without horrendous amounts of coding or using FTP etc. Can anyone suggest a good alternative?