As far as I can tell, this store was closed because of "illegal use of LJ's copyrighted logo and name." (link). However, since Brad started the store himself (see lj-biz comment), it's obviously not a violation of copyright (as he owns the copyright). I'm not quite sure why the store got shut down in that case, but it appears to be gone now, so I suppose that would be a question sandy would have to answer.
However, since the store is gone now, there are a lot of items that users can no longer purchase. Specifically, items like coffee mugs and mousepads that used to be available for purchase legally no longer are.
Does LJ plan to release the logo for printing on such items for individual users? Are there plans to offer "official" items like this via LiveJournal itself? It would seem like a bad idea to tme to shut down the CafePress store if LiveJournal can't provide the items itself, but at the same time, it would seem like a bad idea to offer more items when the originals haven't sold.
So, sandy or anyone else out there:
What are plans for these kind of items?