Caveat: I'm on the organising committee for LCA 2013 but these opinions are my own.
This is not a particularly worrying development. There have been LCAs in the past where the bid process took longer than normal. There have been three teams that are interested in running it, but no-one has actually put forward a bid. I imagine Linux Australia is currently talking with them and seeing what they can do.
There's a perception that running LCA takes massive quantities of time for the entire team for months before the conference. This is not true. Yes, I imagine I'll be busy in the weeks and days leading up to the conference, but at the moment the organisers are able to fit this into their normal daily lives. While simplifying LCA may be possible (and this year's team is already doing that) I suspect that the things people couldn't live without are the ones take a lot of organising, and the things that people want to give up are not actually taking that much of our time.
Personally, I'm sure we'll see an LCA in 2014, and it will rock.