I almost missed this tidbit from overseas in my RSS feeds:
Wird der Windows Live Writer Open Source? - Caschy’s Blog (German)
Here is the Google Translate page: Google Translate
I love WLW, and it does still get incremental updates from Microsoft from time to time if you can catch them, but there are a lot of little nuisances that need cleaning up (IMHO) and it is exciting to think what some crafty developers could do with the code.