Before you panic, Last.FM hasn't gone bust and disappeared. They're still around, still available and still going strong. No, the reason we're saying goodbye is because they've just announced that for all customers outside of the US, UK and Germany, they're going to be charging a monthly subscription fee of €3.00 per month (about $5.80). The subscription fee is for the ability to listen to the radio network - all other functions like Scrobbling, recommendations, charts, biographies, events and videos will remain free. But is that enough? Will people in Australia still consider using a service just so it can record what you listen to and make recommendations? iTunes does that already, and there are so many other Internet radio stations out there in the world that you can always find music to listen to for free.
Plus, the fact that the service is still free to the US, UK and Germany just leaves the impression that any other market isn't really important to them.
So, farewell Last.FM. It's been a blast, but you're just not worth $5.80 a month. Sorry.