Apparently they've broken up the Live Labs group. Some will work on search and others have been sprinkled across other product groups.
Seadragon (Deep Zoom) and Photosynth are neat technologies, but it seems like the kind of thing MS Research should have been producing in addition to (or instead of?) their pure research. Maybe this is a good thing in the long run.
Edit: Changed title to more accurately reflect situation (Changing titles does actually work now doesn't it? I guess we'll find out).